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Monthly Archives: December 2010
What is a trading “edge”? – Part II
In my last post I made a reference to a popular definition of a trading edge that can be found in the trading literature and dicussed in various forums. This definition of a trading edge corresponds to what is usually referred to as expected gain, … Continue reading
Posted in Trading System Analysis
Tagged average trade, expectancy, expected gain, Kelly formula, optimal bet size, Trading edge
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What is a trading “edge”?
I have been reading a few papers lately on the subject of fund performance results and their statistical analysis. I must admit I was very surprised and at the same time very disappointed by the way this subject is approached, especially by … Continue reading
Posted in Risk Management
Tagged expectancy, fund performance analysis, Trading edge, trading luck, trading skill
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