# Category: Math

#### Math Cheat Sheet For Traders

Understanding the mathematical principles of profitable trading can help a trader understand how to create a positive expectancy trading system…

Qualitative analysis seeks to understand human behavior from the perspective of the researcher of information. It looks for the dynamic…

#### The Normal Distribution Formula

In probability theory a normal distribution is a kind of probability distribution with a set value of random variables. The normal distribution formula is: Normal distributions…

#### The Sortino Ratio Formula

The Sortino ratio is a way to measure the risk adjusted return of an asset, investment portfolio, or trading strategy.…

#### The Simple Interest Formula

Simple interest is only calculated on the original amount of capital inside a set time period. It does not include the…

#### The Rule Of 72 Formula

The rule of 72 is a process for quickly projecting how long it will take for a rate of investment…

#### The Return On Equity Formula

For publicly traded companies and in investment terms the return on equity (Also abbreviated as ‘ROE’) is a way to…

#### Probabilities Of Price Action Inside Standard Deviations

Standard deviations are used to measure current price action in relation to the average price of a chosen time frame.…

#### What Is Opportunity Cost?

Opportunity cost expresses the expense of a chosen option among other alternatives in contrast to enjoying the benefit of the…

#### What Is A Cost Benefit Analysis?

A cost benefit analysis is a systematic process for trying to measure the pros and cons of different options to…