Risk Intelligence Test

[Lucrum]

Quote from nonlinear5:

The instructions were pretty clear: if you don't know the answer, select "50%", not "0%".

Apparently this test was tougher than his SAT.

 

[NoDoji]

It seemed to me to be a test of risk intelligence as related to an understanding of probabilities. If you don't know, you choose 50 because a guess is a pure gamble, so you're better off sitting on the sideline until you get something you know.

In trading, if you know there's positive expectancy for a trade setup in a given price environment, you put on the trade without hesitation. If you don't know the odds of success, you don't trade until you do the research that results in a positive expectancy plan.

ADD: I scored just under 95 despite only answering a few questions with certainty.

 

[kid.fx.cross]

well I guess if I scored 28 answering all questions zero, I should get a significantly higher score if I answer all 100%

 

[NoDoji]

Quote from kid.fx.cross:

well I guess if I scored 28 answering all questions zero, I should get a significantly higher score if I answer all 100%

My guess is you'd get a score of 28

 

[k p]

There you have it folks... proof that this test is valid. Nodoji hit the nail on her head with her explanation of what the test is doing. The fact that she scored so high and the fact that she is such a good trader is no coincidence.

Quote from NoDoji:

It seemed to me to be a test of risk intelligence as related to an understanding of probabilities. If you don't know, you choose 50 because a guess is a pure gamble, so you're better off sitting on the sideline until you get something you know.

In trading, if you know there's positive expectancy for a trade setup in a given price environment, you put on the trade without hesitation. If you don't know the odds of success, you don't trade until you do the research that results in a positive expectancy plan.

ADD: I scored just under 95 despite only answering a few questions with certainty.

 

[kid.fx.cross]

Quote from NoDoji:

My guess is you'd get a score of 28

anything other than studying the actual questions and knowing the correct answer

that would make me no better than a fundamentalist

 

[kid.fx.cross]

Quote from NoDoji:

My guess is you'd get a score of 28

yep, you are about right

36 guessing all of them 100%

so apparently we are betting on something like a coin toss

question is, "Will it trend?"

 

[kid.fx.cross]

I guess the next test would be

0

50

100

0

50

100

etcetera

 

[kid.fx.cross]

or you could try to stay in that spread range

40, 50 or 60

 

[kid.fx.cross]

the funny thing is

once after a bad accident I woke up in an ambulance

and they asked me, "Do you know what day it is?"

and rather than admitting I had no idea what day it was, I started guessing

I figured Wednesday was a good guess, since it is about halfway

But first, I told them "December."

Just to see

But they wouldn't go for that