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 thoughts to “New Statistics”

  1. I have read: 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.

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

  3. 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.

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