Quote from Capablanca:
Why isn't the LSD going by bar18 -> 8.3 or if by bar6 -> 10? How do you compute MDRR and %tile accuracy? You're excluding outliers? So you are filtering the distribution? How are you computing these numbers? Manually through Excel?
Sorry to say this is currently in the realm of Jack Hershey opacity.
note im trying be as clear as possible what seems clear to me may not seem clear to you ask questions and i will explain im not jack hershey not sure why i keep getting called that...
thanks for asking this question as it is important.
why isnt the lsd going by bar 18 -> 8.3 or bar 6 -> 10 ...
these are extremes to the short side seen outside the area of reasonable movement exhibited by the sample or the population of movements. so much of the movements fall from 7 and below that 8.3 and 10 can be seen as anomalies or statistical outliers.... extremes in some cases....
MDRR i calculate as the bar im trading if im given
with
n=21
entrance = 40
TP = 60
SL = open
then i risk 40
for 60-40 =20 reward
40:20 or 2:1
MDRR= 2:1
those numbers are made up but it gives you idea how i calc that.
% accuracy is over the N amount of bars 21
if we had used these parameters we would have successfully traded that % amount of bars giving the next bar that statistical % accuracy if we use the same parameters until recalculated.
yes im filtering distribution... filtering the distribution is not bad... your isolating anomalies ... extremities out of the picture giving you more trading ability.
your basically knocking off the 2.5% tails on both ends of the bell curve if you know what im describing your jsut taking the outside rare occurance zones away.
how do i calculate these numbers... im guessing you mean on the fly so i have time to use them.. if im using short time frames yes i wrote indicators in mt4 to do the calculations for me... one that shows me bias... one that plots the stats my tp sl entrance points and probabilities... if im using stuff like the 3 hr i do it in a excel sheet ....
