Profiting from the Z-Score by Mike DeAmicis-Roberts
ARTICLE SYNOPSIS ...Profiting from the Z-Score by Mike DeAmicis-Roberts
What is the Z-score? You can use it to identify the types of winning and losing streaks in a trading system. Once the nature of the streaks are determined, then you can use different money management approaches to maximize profitability.
When traders analyze the results of their systems, they frequently look to the percentage of winners as proof of the system's reliability. In many cases, this is a good indication. However, looking at the percentage of winners and losers only tells part of the story. Sometimes winning trades come in streak...