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Minimum tradable expectancy?


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solom113
Cincinnati
 
Posts: 10 since Jan 2010
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Hello!

I was wondering what you guys consider the minimum expectancy you'd have to find in a system or methodology before you would trade it. For instance, I've tested some systems that have a very small expectancy, but worth trading? No due to comms and slippage etc. What do you guys think?


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Autobot
Ottawa, Canada
 
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solom113 View Post
Hello!

No due to comms and slippage etc.

Could you clarify whether or not you included commissions and slippage?


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darthtrader3.6's Avatar
 darthtrader3.6 
wny
 
Experience: Intermediate
Platform: ninja, excel
Trading: YM, equities
Posts: 86 since Jan 2010


If your thinking in terms of expectancy, i think it helps alot to become familiar with expected value in a more general sense.
chrisperruna.com Blog Archive What is EV or Expected Value
Expected value - Wikipedia, the free encyclopedia

You can make an arguement that you should take every trade that has positive expected value as long as it fits within a good risk management strategy.


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Last Updated on January 29, 2010


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