90% individuals doesn’t have any idea what is genuine significance of procedure? I have heard from a considerable lot of understudies saying procedure is a framework which helps you producing purchase/sell signal.
They additionally measure the achievement pace of technique from the recurrence of winning or lossing with number of exchanges.
7-8 years prior I was additionally one of you who used to say this technique has 90% exactness, this procedure has 75% accuracy…bla bla…What in the event that I would agree that it’s not the precision of methodology but rather it’s accuarcy of giving trading signals however not the profit.You should conclude you need simply a sign or the benefit.
Benefit is created when your framework signal contacts your objective. There is one more story in this backtest that is called slippage and disadvantages (the vast majority of stratgy doesn’t count this while computing the exactness).
On web, you look for any level of exactness strategy.You will get limitless number of results.Many of you more likely than not had a go at applying this system in your trading.What was the consequence of that web 70-80% accuray procedure? Flopped in passing even mininum assumption !!!! Right???
What precisely the significance of any exactness in methodology?
I bet you.80% doesn’t comprehend the importance of accuracy.I will give you a model and you will say it’s so much simple! simple! . You were realizing this yet couldn’t relate.
To comprehend precision, it’s essential to comprehend probability.Accuracy of exchanging framework is only proabilty of getting wanted signal.
Are you swetting.Ha ha!!! simply a joke.
I’m not going to expalin profound mathematics.It’s so basic.
Take an illustration of a coin.If I request you what is proability from getting head??
Assuming your response is 0.5/50%.You are correct!!!
Does it mean on the off chance that I flip my coin multiple times, it will precisely give you 5 time tail and multiple times head.
It tends to be 4 Tails and 6 heads(Head is getting more than the probability).
It very well may be 7 tails and 3 head(Head is not as much as probability)
In this way, in a similar context.If your exchanging exactness is estimated to be half.
It implies the most probability of getting up heading or down course is 5 times(If I’m exchanging multiple times with this framework)
There are such countless various pieces of backtesting that I couldn’t expalin in this article.I trust you probably got some thought.