Update docs/edge.md

Co-authored-by: Matthias <xmatthias@outlook.com>
This commit is contained in:
Victor Silva 2020-09-03 12:53:33 -06:00 committed by GitHub
parent 70eaf971cd
commit 5f9c449d8e
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23

View File

@ -97,7 +97,7 @@ $$ R = \frac{\text{potential_profit}}{\text{potential_loss}} $$
\end{aligned}$<br>
What it effectivelly means is that the strategy have the potential to make $0.33 for each $1 invested.
On a long horizonte, that is, on many trades, we can calculate the risk reward by dividing the strategy' average profit on winning trades by the strategy' average loss on losing trades. We can calculate the average profit, $\mu_{win}$, as follows:
On a long horizon, that is, on many trades, we can calculate the risk reward by dividing the strategy' average profit on winning trades by the strategy' average loss on losing trades. We can calculate the average profit, $\mu_{win}$, as follows:
$$ \text{average_profit} = \mu_{win} = \frac{\text{sum_of_profits}}{\text{count_winning_trades}} = \frac{\sum^{o \in T_{win}} o}{|T_{win}|} $$