Understanding Standard Deviation
ฝัง
- เผยแพร่เมื่อ 3 ม.ค. 2025
- In this video we cover the basics of standard deviation, which is used by investors to quantify their exposure to total risk. It is also used to determine a range of returns around the investment’s average return.
Learn more about Bryant's CFP Program here: bryantcfp.com.
thank you so much! I was so confused and this cleared it up!
outstanding video. Thank you!
Nicely Explained
Wouldn't it be easier and more accurate to say 50%+34%? you left out the space after the 3rd SD
amazin!
Mind blown
Sir,I have traded this strategy for the last 10 years & it makes money.Please back test it & publish the results
NON DIRECTIONAL STRATEGY
You could test the strategy on instruments which have high liquidity & trade around the clock--let us say forex & high volume US indices to start with.All orders are Limit order & orders are entered end of each day based on closing prices(EOD).For Forex pairs end of NY session is END OF DAY
On A given instrument(say Eur/Usd) limit order is placed to buy(or sell) at A distance " D" which is (70% of average daily ATR) away from the closing price EOD.Take profit (TP) & stop loss (SL) distance is 50% of that distance (D)--every order is all complete order on the same ticket.Only one order/day on the instrument.Win or lose--no trader intervention,market decides when take profit or stop loss gets hit.On that instrument orders are entered on both sides, Long & short at the same time.
All open orders get cancelled at the end of that day & new orders are entered based again on end of day new prices.Orders are placed on multiple different currencies to diversify risk(both dollar pairs & cross currencies as well).Risk capital on any instrument is 1% of account equity only.
Rationale--Markets are random but fractal in nature.Distance travelled in a given time span is based on square root of time.TRADING EDGE comes from the fact that from End of day INITIAL price the TP is closer compared to SL & chances of hitting TP are higher than hitting SL--and when TP is hit,then stop loss order gets cancelled right away..If one month option is priced $1--then 4 month option should cost $2.Distance travelled in 4 months is square root of 4.Option premium formulas are not ALLperfect but billions of $$ trade based on that formula & market makers make $$,no matter where the market goes/or does not go.At the money Call & put cost the same--take your pick.
Thank you.
Is there a way to apply this strategy to Crypto / Futures market. Or is it only applicable to options?