"Now change the above code to reflect probabilities of 0.52 and 0.48 we get this:"
cost will take effect as 0.52 and 0.48, w/ cost system becomes constant loser, if you take 50/50 w/ zero cost, any random system can make gain
cost will take effect as 0.52 and 0.48, w/ cost system becomes constant loser, if you take 50/50 w/ zero cost, any random system can make gain
DislikedHere is my screenshot for the same for 50:50 chance (random walk) coin flip: {image} Code: sequenceOfCoinTosses <- sample(c(-1,1), 10000, replace = TRUE, prob=c(0.5,0.5)) plot(cumsum(sequenceOfCoinTosses), type = 'l', ylab="", main="Sum of 10000 coin tosses") abline(h=0) Now change the above code to reflect probabilities of 0.52 and 0.48 we get this: {image} So if there is just a 2% edge we get a trend instead of a random walk. That is our goal. Just get a slight edge. In trading that edge is ever elusive. Systems tend to work for a while, then...Ignored
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