028: Andrew Falde – How to Avoid ‘Predicting’, the Purpose of Options Markets, and 7 Components of Profitable Systems
Chat With Traders
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Using Expectancy Numbers in a Systematic Trading System
The term expectancy is an actual mass formula that's used for your average win, your average loss, times the number of each of those. Psychologically, you say, this is, i don't wat this one to turn into a loss, too som man to take it off. And that's the psychology you have behind using expectancy rather than how often you're right. The fourth one is volatility, which is not necessarily the volatility of the instrument you trade, but it's actually the volatility of returns. So looking at different ways of volatility of returns is something that we do a that which one o myn fie five is frequency. A higher frequency system, especially as a retail trader
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