Glossary · Backtest & returns
Edge
A proven whale's current win rate minus the price they paid to enter.
Edge is a proven whale’s current market-level win rate minus the price they paid to enter a position. A positive edge means they tend to win more often than the entry price implied was likely.
Edge — paying less than something is worth — is the lever the research weights more heavily than conviction. A whale’s strong win rate is usually already priced in (favorites cost more), so edge is what’s left after the market has done its pricing.