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Hello All,
I was wondering if someone could help me out. I'm having trouble
calculating expectancy based upon Tharp's book. I know
I can calculate the expectancy from the statistic report using avg
win/avg loss but I wanted to follow Tharp's procedure.
I just did a simple backtest on Microsoft and was trying to figure
out the expectancy based upon Tharp's "Trade Your
Way To Financial Freedom" book. On page 158, his second step is to
eliminate the effect of position sizing by only
considering single units or 100 share blocks. I think this is where
I'm having my problems. Am I supposed to divide my
gains and losses by the number of shares and then times it by 100? I
did this but it just doesn't seem right. I wanted to
attach my excel file but I don't think I have the rights to upload it
or I'm not seeing how to do it.
Thanks for any help,
Rob
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