VIDEO: 7:36 MINUTES
This session covers statistical topics including:
This session covers statistical topics including:
- Profit from Prospective
- Implied Volatility
- Normal Distribution (aka Bell Curve)
- Fat Tail
Profit from Prospective
- Mechanical application of specialized knowledge
over time produces consistent profits- Nobody “KNOWS” the direction of the market
- Nobody “KNOWS” the direction of the market
- Measure of price
- Effect of expected news, event, industry, earnings, etc.
- Comparison for context
- Use of historical volatility for comparison
- Use of historical volatility for comparison
- Key component used in most common derivatives (e.g. Black-Scholes)
- Use in probability theories
- Variation in statistical law distribution
- Diminished probability of staying in defined deviation
- Occurs due to binary events
- A key reason financial risk management is important