In statistics the expected value or expectation (or hope) of a random variable, which in our case is the measurement of all triggers that have occurred in the past at least the last month, in a uniform graph example 1 hours, 30 minutes and so on. is the sum of the probability of each event or sign of market value multiplied by the amount or measurement of the events or triggers (signals of admission). For example, in a game of chance the expected value is the average profit.
Probability in this case is in terms of percentage frequency in an operation with a signal giving a revenue number of points for example greater than 10 pips, 20 pips higher and so on.
Because it is useful to know these values?, Because if you force the statistics of a signal in terms of expected number of points and the times in terms of compliance with such pips, puts at risk the success of your system.
Analytical Techniques
Elder Alexander Technique effective filter.
Introduction
Alexander Elder is a renowned trader, and has written works of the prestigious header "Trading for a Living" - One of the systems and techniques described in this book is an entry system and filter entry to the market that will describe below:
Entering the market upward or downward turns of a combination between the time of 14 sessions and an MA of 13 or 20 sessions.
The system works as follows:
1. When time line 100 is crossed warning
2. The price must close above or below the MA selected (we call this condition the first filter condition Moment)
3. Given the condition 1. But the condition 2. entering the market works upwards and downwards.
4. We conducted numerous tests on this strategy and have yielded good results on charts and Euro GBP tables and 30 minutes in 1 hour. An average of about 25 pips per trade.
5. The stops should be placed at one of the terms vanish, whatever.
