Loadout Overview
Default (211):
Edge probably has the most set in stone loadouts of any character in the game. If you do not need the anti fireball tool of s1.1, then you pick this loadout. Normally you don't need the anti fireball because s1.2 is a two hitting fireball itself. This loadout has the best conversions, the best damage, the best neutral. Play this one.
Anti-fireball (111):
s1.1 allows you to eat fireballs while building meter and sword charges, but you sacrifice the ability to convert from far hits with a bar. This is a major loss, but the ability to sit full screen and profit off your opponents zoning is very strong. Play this to spite zoners.
The "Gucci"(121):
s2.2 actually fixes 111's issue of not being able to convert far hits with a bar, but you give up something even bigger: A usable dp. To be frank s2.2 is awful, but it is very stylish in combos.
What about...
s1.3 is largely useless, for a time it was thought to increase meterless damage, but optimal 211 bnbs can outperform it. In pressure its slightly better on block than run cancel, but Edge is never really dying for more ways to make the opponent block. It can also be extremely tricky to build sword charges, do you really want to sacrifice oki to build some meter and a sword charge? s1.3 is more fun than functional.
s3.2
This is the worst move in the game by a lot. There is not much to say other than: never pick this.