How To Measure Skewness Of A Trading Strategy Using Python – (Code, Setup, Example Analysis)

How To Measure Skewness Of A Trading Strategy Using Python – (Code, Setup, Example Analysis)

ByOddmund Groette

Many metrics and statistics are used to quantify a trading strategy’s performance. CAGR, standard deviation, Sharpe Ratio, and maximum drawdown are among the most popular indicators. However, today, we will look at one that is not used very often: How to measure the skewness of a trading strategy using Python. The skewness is a measure…

Negatively Skewed Distribution in Trading Strategies – Definition, Example, Histogram (Fat Tail Analysis)

ByOddmund Groette

What is negatively skewed distribution in trading strategies? Negatively skewed trading strategies are “accidents waiting to happen”: You have many small winners and rare big losers. Unfortunately, the big losers can put you out of business. This is what a negatively skewed distribution in trading strategy is – you need to understand the profit distribution…