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In the last issue of OR mag (Fall 1999) there is an article titled
"Calculating Stops with Statistics". On page 43 the author,
referring to a daily bar, makes the statement
"In accordance with the rules of statistics, and assuming a normal
distribution, approximately two-thirds of all outcomes will lie
within one standard deviation (plus or minus) from the mean."
She is apparently referring to the trades that occur within a bar.
My question is, is there any reason why we should assume a normal
distribution? This doesn't seem logical.
Dave
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