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Why is Experience (Ex element) investable?
• Rational Investors invest if BOTH of the following conditions are met1. Past returns were sufficiently high, on a risk-adjusted basis,
AND2. Past returns were not achieved randomly
• The statistical representativeness of a trading history is essential to rule out luck. With no further data, a strategy with 10,000 trades and positive returns is more representative than a strategy with just 10 trades (and the same returns)
• That’s why Experience matters. The results of a given strategy are more reliable for an investor the higher the statistical representativeness of that strategy’s trading history
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INDEX
1. UNDERSTANDING EX
2. IMPROVING ON EX
3. QUESTIONS?
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“Ex” – What is it?
“Ex” measures how statistical representative a strategy’s trading history is (this badge helps to rule out luck as a source of returns)
• “Ex” is measured in TS periods. 1 TS period ≈ 1 month of active trading in a strategy
• The highest level of statistical representativeness is reached when a strategy contains 12 TS periods
• The diagnosis on TradeSlide is carried out taking into account the last 12 TS periods in a strategy (i.e. in a strategy with 16 TS periods, only the last 12 periods are taken into account)
• Two strategies with the same number of TS periods have the same level of statistical representativeness, irrespective of their trading style (scalper, swinger, etc.)
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Understanding Ex – Ex Badge
Your Ex level is displayed under Trader -> Challenge
• Badges represent progression in colors• Yellow = Lowest achievement• Magenta = Highest achievement
• This strategy displays 8.6/10 Ex• Shown by number in progress bar
• Progress within magenta is displayed in the circular progress indicator around the badge itself
• Click on to see a detailed description of the level you are in
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Understanding Ex – Ex Chart
Your Ex Chart is available under Trader -> Challenge
nth TS Period complete!
By Nov. 28, 2012, this strategy had accumulated 4.96 TS periods in approx. 8 real months. The strategy clocks 1 TS period every 53 working days!
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Visit the Leaderboard to see “Ex” for other tradersBenefit from the filter functionality! Order by TS Elements!
Filter by TS Experience!1
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Color, score & relative rank on this badge
Define the timeframe
Understanding Ex – Ex Leaderboard
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INDEX
1. UNDERSTANDING EX
2. IMPROVING EX
3. QUESTIONS?
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Improving Ex
• Ex is an “easy” TS Element. It “only” takes time in the market to improve
• You’ll make valuable mistakes that will discipline your “gut”• Only time allows you to formulate and optimize your strategy
• Ex CANNOT be increased “artificially”• Multiple simultaneous trades in a single asset are GROUPED
into 1 position and only contribute to Ex as 1• Multiple simultaneous trades in positively correlated assets:
again only 1 independent trading decision (would a good trader open simultaneous trades in positively correlated assets anyway??)
• Total count of trades is MEANINGLESS – Ex is ONLY driven by TS positions (see next slide or Trading Journal for an explanation)
• So: focus on all other elements. Doing this will clock hours in the market for your strategy, and your Ex will build up. Investors will know that you’re more than a lucky Monkey!
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INDEX
1. UNDERSTANDING EX
2. IMPROVING ON EX
3. QUESTIONS?
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Questions?
Trading is hard – no wonder there are unanswered questions!(Why not, together, build a Knowledge Base that answers them all?)
• The Knowledge Base contains TS Mentors’ answers to all your questions!
• Mentors are Traders like you who enjoy helping out, and are voted very good at it, AND
• Trading educators hand-picked for quality and broker independence, who pitch their materials
• Want to contribute? Great!• Post an article / Post• Ask or answer questions• Rate fellow traders’
contributions
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Can you do better?
• This article is a “stub” (an unfinished entry that MUST be improved)• We need your questions & feedback to improve it!• Feel free to post your questions to the TS Knowledge Base
• Have suggestions?• [email protected] can’t wait to hear them• We’d love to credit you for improving our content
• Contributing to this section will boost your mentor score if others like what you post – helping out will reflect on your community standing, which means
• More traders will visit the URL on your profile• When they visit, they’ll request your mentoring!
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