Curve charts... What are we looking for?
1. At any point, can you boost the EV?
2. Is this point or area stable across samples?
3. Is the magnitude of boost stable?
What are we not concerned with?
1. Specific EV readings... can explain later why we don't worry too much about this. Previous pillars basically explain it (Can you tell the difference from a long lead and an actual result?).
These charts are missing a 3rd line that is very important. That is the expected EV. Different from initial. Initial is what the signal produced with no management. expected EV is what the EV is expected be assuming the market is efficient minus trading costs.
Think... Are magnitude and area stable enough to count on?
1. At any point, can you boost the EV?
2. Is this point or area stable across samples?
3. Is the magnitude of boost stable?
What are we not concerned with?
1. Specific EV readings... can explain later why we don't worry too much about this. Previous pillars basically explain it (Can you tell the difference from a long lead and an actual result?).
These charts are missing a 3rd line that is very important. That is the expected EV. Different from initial. Initial is what the signal produced with no management. expected EV is what the EV is expected be assuming the market is efficient minus trading costs.
Think... Are magnitude and area stable enough to count on?