New Statistics

3 new statistics are added today (find it in the ‘advanced statistics’ window):

Expectancy – Expectancy tells you what you can expect to make (win or lose) on every trade.

Standard Deviation – Standard Deviation is a statistical measure of volatility. It shows how much variation or dispersion there is from the mean (Expectancy).

Z-Score – Z-Score is used for calculating the ability of a trading system to generate wins and losses in streaks. It enables us to see if the streaks generated are of a random pattern or not.

The above statistics can be analyzed in real time, if choosing to analyze a custom period.

* The new statistics will become available as soon as you update your account.

More statistics are on their way :)

Have a great trading week!

The Myfxbook team.

8 Responses to “New Statistics”

  1. TheTonik says:

    Can someone explain in more detail how the Z-Score is used?

    Myfxbook Reply:

    Here you go: http://en.wikipedia.org/wiki/Standard_score

  2. wieb says:

    I have read: http://en.wikipedia.org/wiki/Standard_score but still don’t understand because I am not statistical expert.

    Just for example:
    - Standard Deviation: $2246.77
    - Expectancy: $436.93
    - Z-Score (Probability): -10.14 (99.98%)

    Here is how I interpret those numbers in my own simple language:

    Expectancy = you can expect to make $436.93 on every trade.

    Standard Deviation = $2246.77 dispersion from Expectancy – average trade in $1809.84 – $2683.7 range ($2246.77 +- $436.93)

    Z-Score – -10.14 (99.98%) => I don’t understand this

    Please correct me and help us to more understand.

    Myfxbook Reply:

    You understand the values correctly.

    As to the z-score, here’s an article explaining it: http://www.forextraders.com/forex-strategy/using-the-z-score-to-determine-trade-size.html

  3. TheTonik says:

    LOL I still dont quite get it. How about this: when it comes to a Z-Score, is a positive or negative number better?

    Myfxbook Reply:

    Well, the sign doesn’t make the z-score value any better or worse – what we’re looking to see is a z-score value greater than 1.96 or less than -1.96 (Equal to 95% probability or better).

    While z-score tells us if the streak of losses/wins are random or not, the sign simply tells us if the dependence is positive or negative, meaning:

    Z-Score negative – dependence is positive.
    Z-Score positive – dependence is negative.

    Positive dependence – a profit will be followed by a profit and a loss by a loss.
    Negative dependence – a loss will be followed by a profit and a profit by a loss.

    And how certain can we be that it will happen? This is the percentage that is shown to you in your system’s z-score value. So for example, if z-score = 2.17(97.0%), it means there is a 97% confidence level that a loss will be followed by a profit and a profit by a loss (negative dependence). In such case you would want to miss a trade after a profit and take a trade after a loss to maximize profits and minimize losses.

    Hope that’s clear enough! We’ll add a section describing it in full, in the next several days.

    TheTonik Reply:

    Yes that helps! Thank you!

  4. Larry Lincicome says:

    Keep working ,impressive job!