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Ex Element

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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?• theowl@tradeslide.com 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!