Thread: Systems Fear
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  #137  
Old 13th March 2012, 09:40 PM
Vortech
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Using my test sample

You have 30 winners from 50 selections

30 winners, 20 losers. Avg Dividend $4.00
Expected number of winners is 1/4 = 0.25
Normalise the market to from 115% is 0.25/1.15 = 0.21739

50 Selections so multiply by 0.21739 to get the expected winners

Gives 10.87 winners expected

Expected losers is 50 - 10.87 = 39.13

Observed winners = 30 A1
Observed losers = 20 B1
Expected winners = 10.87 A2
Expected losers = 39.13 B2

Put this into excel as CHITEST =CHITEST(A1:B1,A2:B2) on get something like 0.0000005%

Are these the chances of the system continuing? I'm very interested in hearing others thoughts

Even making the Avg Dividend like $3.00 more realistic is still giving a very very low %
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