What is Edge?

Indian market context (NSE)

Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Edge shows up on Indian index, equity, and futures books — update to live quotes in your journal.

Nifty 50 perspective

Trading Edge on Nifty (24,300): backtest includes 9:15 liquidity and expiry-day behaviour; edge on index may vanish outside 10:00–14:30 window.

Reliance Industries perspective

Trading Edge on Reliance (₹1,300): liquidity is deep but event gaps dominate — strategy rules need explicit earnings blackout weeks.

Bank Nifty futures perspective

Trading Edge on Bank Nifty futures (55,000): high beta suits shorter holds; overnight trading edge must state NRML risk and gap plan in writing.

How to validate

• Minimum sample: 30 closed trades on one strategy tag before trusting Edge.
• Check for one outlier week inflating Edge — export largest winners and losers.
• Recompute Edge after including brokerage, STT, and slippage on F&O tags.
• Compare Edge on the same date range as profit factor and max drawdown.

How to track in TradeLyser

• Open Strategy Board or analytics → filter by strategy tag and review period.
• Locate the widget or column reporting Edge (or export trades to compute manually).
• Store snapshot values in weekly review: Edge, profit factor, drawdown, trade count.
• If Edge is custom, add a spreadsheet column fed from TradeLyser CSV export.

Best practices

• Publish Edge per strategy, not only at account level.
• Use the same calculation window (weekly vs monthly) year-round.
• Pair Edge with sample size in every review slide or note.
• Document formula used so mentors interpret the same number.

Common pitfalls

• Changing rules after fewer than 20 trades because Edge moved slightly.
• Mixing intraday and positional tags when computing Edge.
• Ignoring costs so Edge looks better than banked P&L.
• Letting one outlier trade dominate the Edge reading.

How to use this in TradeLyser

Compare expectancy and profit factor per tag quarterly; pause tags with negative net edge.