Ease of Use
EdgeWonk is a digital trading journal, though it’s so much more than simply a piece of software. It allows you to track behavior, interpret data and optimize your trading systems based on a wide array of variables. Find out what we’ve discovered in this EdgeWonk review.
EdgeWonk is a digital trading journal, but it serves as much more than a piece of software to enter your trades into. It is more of a trading behavior tracker, interpreting the data you feed into it, allowing you to optimize your trading systems. That’s what we’ve discovered in this EdgeWonk review.
Needless to say, it’s vitally important to track your trading and learn from your mistakes. Listen to any interview with a decent trader, and at some point, this will come up, and they will most likely suggest a trading journal. EdgeWonk aims to take your scribbled legal-pad to the next level. Even if you’re somewhat proficient at Excel, you’ll have to be management consulting level of Excel to be able to code half the functionality that EdgeWonk offers in-the-box.
Currently, you can purchase a EdgeWonk license for $169, no subscription required. However, with the way the SaaS industry is going, don’t be surprised if EdgeWonk pivots to a subscription model, offering residual updates and feature additions for members. That said, it’s refreshing to see a service that offers a one-time fee.
In addition to the platform, EdgeWonk offers a trader development course. If you buy it with your EdgeWonk license, it costs an extra $28, bringing the total to $197, but if you purchase it alone, it costs $79.
EdgeWonk has algorithms that look at all of your trades, and create an optimized system of timing your exits/entries, what type of orders to place, where to place your stops, etc. A tool like this alone can serve to drastically increase your win rate.
For example, assume you’re a trader of the S&P 500 E-minis, you may be trying a breakout strategy which has been the biggest contributor to your losses. Because in a normal brokerage statement, it’s going to be a list of all E-mini trades. EdgeWonk’s algorithms will pick up on your breakout trades consistently losing money and tell you to stop trading them.
Another example, is you may find that you place your stops too close to your order price and get shaken out of a lot of trades that would have made you money if you had a wider stop loss. EdgeWonk’s algorithms will not only tell you to widen your stops, but how to set them better.=
When you have a statistically significant sample of trades, you can begin running simulated portfolios, based on your trading activity. This shows you multiple possible outcomes for your trading account if you traded using similar signals, time frames, and style, but just made different trades. This shows how robust your strategy really is.
Advanced Trading Classifiers
When entering the details about a trade, EdgeWonk’s Advanced Trade Data has some detailed classifiers, including macro events that were occuring around your trade, like whether the market was trending or trading in a range, if there was in FOMC meeting, if the US President was speaking at the moment, etc. The real game changers are the psychological classifiers though, if you can be honest.
EdgeWonk has classifiers for your emotional state, you can put “tired, forgot to have coffee,” or “feeling great,” and save it for later use. Additionally, you can attribute an emotion to why you exited the trade, like “impatience,” or “greed.” Over time, you will collect enough data to know what emotions and psychological states are holding back your trading the most.
Honorable Mentions in our EdgeWonk Review:
- Holding Time Analysis: How is your trade length affecting your performance?
- Trade Management Evaluation: How much money are you leaving on the table?
EdgeWonk’s Trade Search Filter
This EdgeWonk review has found that it is different from it’s competition in a big way. It’s not a simple trading journal. It’s a data-driven trade analysis tool, with all of the features of a trading journal. There are other trading journals out there offering useful tools, like TraderVue and Profitly, however, none of them have the data analysis application of EdgeWonk.
What Type of Trader is EdgeWonk Best For?
One can make the argument that EdgeWonk is an excellent piece of software that will help any trader, however, it’s more helpful to some than others. Generally, the more active of a trader that you are, the more you can utilize EdgeWonk. The as your time horizon expands, and the lower your frequency of trading, EdgeWonk gets less helpful. Someone who makes 10 trades per year is going to take a long time to have a statistically significant set of data to draw insights from.
In short with this EdgeWonk Review, EdgeWonk is perfect for day traders and highly active swing traders, and likely to be a pivotal part of their trading. For the global macro trader who makes a few trades per quarter, it’s simply one piece of analysis that make alarm them of a mistake.
Pros & Cons
- Track your trading
- Draw insights from the massive amount of data that your trading produces
- Proprietary algorithms that can point you to the biggest leaks in your trading
- Simulate model portfolios based on your trading style to spot survivorship bias and long term risks
- Need statistically significant amount of trades to gain from the insights
- Much better for short term, active traders