From bd1b05828ef0969d854c2608a94416df0081fda5 Mon Sep 17 00:00:00 2001 From: misagh Date: Wed, 7 Nov 2018 18:19:58 +0100 Subject: [PATCH] typos in documentation corrected --- docs/edge.md | 20 ++++++++++---------- 1 file changed, 10 insertions(+), 10 deletions(-) diff --git a/docs/edge.md b/docs/edge.md index b083d1575..48461ec5b 100644 --- a/docs/edge.md +++ b/docs/edge.md @@ -10,10 +10,10 @@ This page explains how to use Edge Positioning module in your bot in order to en ## Introduction Trading is all about probability. No one can claim that he has a strategy working all the time. You have to assume that sometimes you lose.

-But it doesn't mean there is no rule, it only means rules should work "most of the time". Let's play a game: we toss a coin, heads: I give you 10$, tails: You give me 10$. Is it an interetsing game ? no, it is quite boring, isn't it?

-But lets say the probabiliy that we have heads is 80%, and the probablilty that we have tails is 20%. Now it is becoming interesting ... +But it doesn't mean there is no rule, it only means rules should work "most of the time". Let's play a game: we toss a coin, heads: I give you 10$, tails: You give me 10$. Is it an interesting game ? no, it is quite boring, isn't it?

+But let's say the probability that we have heads is 80%, and the probability that we have tails is 20%. Now it is becoming interesting ... That means 10$ x 80% versus 10$ x 20%. 8$ versus 2$. That means over time you will win 8$ risking only 2$ on each toss of coin.

-Lets complicate it more: you win 80% of the time but only 2$, I win 20% of the time but 8$. The calculation is: 80% * 2$ versus 20% * 8$. It is becoming boring again because overtime you win $1.6$ (80% x 2$) and me $1.6 (20% * 8$) too.

+Let's complicate it more: you win 80% of the time but only 2$, I win 20% of the time but 8$. The calculation is: 80% * 2$ versus 20% * 8$. It is becoming boring again because overtime you win $1.6$ (80% x 2$) and me $1.6 (20% * 8$) too.

The question is: How do you calculate that? how do you know if you wanna play? The answer comes to two factors: - Win Rate @@ -21,7 +21,7 @@ The answer comes to two factors: ### Win Rate -Means over X trades what is the perctange of winning trades to total number of trades (note that we don't consider how much you gained but only If you won or not). +Means over X trades what is the percentage of winning trades to total number of trades (note that we don't consider how much you gained but only If you won or not). W = (Number of winning trades) / (Number of losing trades) @@ -76,7 +76,7 @@ Edge dictates the stake amount for each trade to the bot according to the follow - Allowed capital at risk - Stoploss -Alowed capital at risk is calculated as follows: +Allowed capital at risk is calculated as follows: **allowed capital at risk** = **total capital** X **allowed risk per trade** @@ -96,7 +96,7 @@ If true, then Edge will run periodically How often should Edge run in seconds? (default to 3600 so one hour) #### calculate_since_number_of_days -Number of days of data agaist which Edge calculates Win Rate, Risk Reward and Expectancy +Number of days of data against which Edge calculates Win Rate, Risk Reward and Expectancy Note that it downloads historical data so increasing this number would lead to slowing down the bot
(default to 7) @@ -127,14 +127,14 @@ It filters paris which have an expectancy lower than this number (default to 0.2 Having an expectancy of 0.20 means if you put 10$ on a trade you expect a 12$ return. #### min_trade_number -When calulating W and R and E (expectancy) against histoical data, you always want to have a minimum number of trades. The more this number is the more Edge is reliable. Having a win rate of 100% on a single trade doesn't mean anything at all. But having a win rate of 70% over past 100 trades means clearly something.
+When calculating W and R and E (expectancy) against historical data, you always want to have a minimum number of trades. The more this number is the more Edge is reliable. Having a win rate of 100% on a single trade doesn't mean anything at all. But having a win rate of 70% over past 100 trades means clearly something.
-Default to 10 (it is highly recommanded not to decrease this number) +Default to 10 (it is highly recommended not to decrease this number) #### max_trade_duration_minute -Edge will filter out trades with long duration. If a trade is profitable after 1 month, it is hard to evaluate the stratgy based on it. But if most of trades are profitable and they have maximum duration of 30 minutes, then it is clearly a good sign.
+Edge will filter out trades with long duration. If a trade is profitable after 1 month, it is hard to evaluate the strategy based on it. But if most of trades are profitable and they have maximum duration of 30 minutes, then it is clearly a good sign.
Default to 1 day (1440 = 60 * 24) #### remove_pumps -Edge will remove sudden pumps in a given market while going through historical data. However, given that pumps happen very often in crypto markets, we recommand you keep this off.
+Edge will remove sudden pumps in a given market while going through historical data. However, given that pumps happen very often in crypto markets, we recommend you keep this off.
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