From 5f9c449d8eecd8a1af79c2a1e7a3f5b897ea5eb6 Mon Sep 17 00:00:00 2001 From: Victor Silva <37382997+silvavn@users.noreply.github.com> Date: Thu, 3 Sep 2020 12:53:33 -0600 Subject: [PATCH] Update docs/edge.md Co-authored-by: Matthias --- docs/edge.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/edge.md b/docs/edge.md index 7634718ae..e6b27a340 100644 --- a/docs/edge.md +++ b/docs/edge.md @@ -97,7 +97,7 @@ $$ R = \frac{\text{potential_profit}}{\text{potential_loss}} $$ \end{aligned}$
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: $$ \text{average_profit} = \mu_{win} = \frac{\text{sum_of_profits}}{\text{count_winning_trades}} = \frac{\sum^{o \in T_{win}} o}{|T_{win}|} $$