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.
Can someone explain in more detail how the Z-Score is used?
Here you go: http://en.wikipedia.org/wiki/Standard_score
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.
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
LOL I still dont quite get it. How about this: when it comes to a Z-Score, is a positive or negative number better?
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.
Yes that helps! Thank you!
Keep working ,impressive job!