Category: Math

3x+1 Concerning the above math problem, Paul Erdös said that “Mathematics is not yet ripe for such questions.” He also offered $500 USD for its solution. Jeffrey Lagarias said in…

Understanding the mathematical principles of profitable trading can help a trader understand how to create a positive expectancy trading system with an edge. The understanding of the underlying math can…

Qualitative analysis seeks to understand human behavior from the perspective of the researcher of information. It looks for the dynamic in an integrated reality. Information can be gathered through observation,…

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 are valuable in statistical analysis and is used a lot…

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

Simple interest is only calculated on the original amount of capital inside a set time period. It does not include the compounding effect of returns on new money accrued. Simple interest can be…

The rule of 72 is a process for quickly projecting how long it will take for a rate of investment return to make capital double. The number 72 is used…

For publicly traded companies and in investment terms the return on equity (Also abbreviated as ‘ROE’) is a way to measure the amount of net profits from a business as…

Standard deviations are used to measure current price action in relation to the average price of a chosen time frame. The assumption in the use of a standard deviation is…

Opportunity cost expresses the expense of a chosen option among other alternatives in contrast to enjoying the benefit of the other possible choices. The ‘cost’ is the difference in one…