What is a Statistical Edge in Trading - Expected Value Explained скачать в хорошем качестве

What is a Statistical Edge in Trading - Expected Value Explained

Official Site: https://tradingparadigm.com Free Course & Community: https://tradingparadigm.com/free-trad... Next-Level Training & Mentorship: https://tradingparadigm.com/top-rated... Exclusive Discounts: https://tradingparadigm.com/exclusive... 🔧 1 Tool That Will Completely Change the Way You View Markets: https://tradingparadigm.com/volume-pr... ✅ Top 2 Training & Mentorship Programs For Developing Legitimate Market Edge: Profile Pathway → https://tradingparadigm.com/portfolio... Profile Method → https://tradingparadigm.com/portfolio... What is a Statistical Edge in Trading - Expected Value Explained: Full Article: https://tradingparadigm.com/what-is-a... A Statistical Edge in Trading is Simply a Strategy or System With a Positive Expected Value. Become a Profitable Trader By Applying the Expected Value Equation. When people try to find or develop a statistical edge for trading stocks, options, futures, forex, cryptocurrencies, or whatever they prefer, they often latch onto win rates – immediately assuming that a 50%+ win rate automatically equates to a winning system. But what often gets overlooked is the fact that win rate is only part of the equation, and in many cases, doesn’t tell the whole story. Believe it or not, a trader can have a 90% win rate and still have a losing system. So don’t take win rate as the ultimate gauge. On the flip side of that, a trader can have a 10% win rate or lower and still have a winning system. So there are obviously other critical components to consider. The average sizes of your wins and losses can’t be ignored – they have to be factored in. All over the internet you’ll find traders boasting about their high win rate systems, even if those high win rates don’t necessarily equate to long-term profitability. I guess the idea of having a 70%, 80%, or even 90% win rate system is more important than making money. But the truth is that most consistently profitable traders have a win rate somewhere in the 40-60% range. This doesn’t sound exciting to the majority of individuals looking for trading systems, which is how they end up down the ineffective get-rich-quick path. So you have to be realistic and understand the concept of expected value. Win rate is important, sure, but not the sole ingredient. Asymmetric Risk-Reward: https://tradingparadigm.com/what-is-a... Volume Profile & Market Profile: https://tradingparadigm.com/what-is-p... Molding Your Market Framework: https://tradingparadigm.com/molding-y... The Success Formula: https://tradingparadigm.com/become-a-... Day Trading vs. Gambling: https://tradingparadigm.com/day-tradi... Trade Tracking & Analysis: https://tradingparadigm.com/how-to-pr... DISCLAIMER: This video and YouTube Channel are for educational and informational purposes only; not investment advice. Any words expressed within videos are just opinions for educational and informational purposes only and should not be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. Consumption of the information within videos is at your own risk and you assume all responsibility for the use or misuse of such information. Actively trading stocks, options, futures, forex, and other financial markets and instruments carries substantial risks. You can potentially lose all or more than your initial investment. Any examples portrayed of historical performance are not necessarily indicative of future results. You should consult a licensed or registered professional before making any investment decisions. https://tradingparadigm.com/tradingpa... AFFILIATE DISCLOSURE: In certain instances, I may earn a small commission through sales made using affiliate links. These links do not make any product or service more expensive for you. In many cases, the products and services discussed are actually cheaper for you thanks to my relationships with these product/service providers and my abilities to obtain special discounts and coupon codes from them. Any product or service that I recommend is based on thorough personal use and experience. The opinions expressed about these products and services are my own. https://tradingparadigm.com/tradingpa...