Explaining Your Trading Edge
Draft guide • 2 min read
FYFX Learn
Key Takeaways
- Describe the behaviour or market relationship your strategy seeks to exploit.
- Summarise your markets, holding periods, decision process, risk controls and capacity.
State the Rationale
Describe the behaviour or market relationship your strategy seeks to exploit. Explain who takes the other side, why the opportunity may persist and what could make it disappear. Clear reasoning matters for discretionary, quantitative and alternative approaches alike.
Show the Evidence
Separate research, paper trading and live results. Include the period covered, costs, capital assumptions and limitations of the record. A concise explanation of difficult periods is more useful than selecting only the strongest outcomes.
Prepare the Introduction
Summarise your markets, holding periods, decision process, risk controls and capacity. Start at a high level and do not share confidential code or credentials through a draft enquiry form. Any subsequent review or capital allocation requires a separate discussion.