An apples to apples comparison of experience across all types of trading styles. Scalpers, swingers, Ex is the measure that determines whether a strategy's performance is statistically speaking different from luck

1. Ex Element
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2. Why is Experience (Ex element) investable?
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Rational Investors invest if BOTH of the following conditions are met
1. Past returns were sufficiently high, on a risk-adjusted basis, AND
2. Past returns were not achieved randomly
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The statistical representativeness of a trading history is essential to rule out luck.
With no further data, a strategy with 10,000 trades and positive returns is more
representative than a strategy with just 10 trades (and the same returns)
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That’s why Experience matters. The results of a given strategy are more reliable
for an investor the higher the statistical representativeness of that strategy’s
trading history
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3. INDEX
1. UNDERSTANDING EX
2. IMPROVING ON EX
3. QUESTIONS?
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4. “Ex” – What is it?
“Ex” measures how statistical representative a strategy’s trading history is
(this badge helps to rule out luck as a source of returns)
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“Ex” is measured in TS periods. 1 TS period ≈ 1 month of active trading in a strategy
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The highest level of statistical representativeness is reached when a strategy contains
12 TS periods
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The diagnosis on TradeSlide is carried out taking into account the last 12 TS periods in a
strategy (i.e. in a strategy with 16 TS periods, only the last 12 periods are taken into
account)
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Two strategies with the same number of TS periods have the same level of statistical
representativeness, irrespective of their trading style (scalper, swinger, etc.)
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5. Understanding Ex – Ex Badge
Your Ex level is displayed under Trader -> Challenge
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Badges represent progression in colors
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Yellow = Lowest achievement
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Magenta = Highest achievement
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This strategy displays 8.6/10 Ex
•2 Shown by number in progress bar
•3
•4
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Progress within magenta is displayed in
the circular progress indicator around the
badge itself
Click on
to see a detailed description
of the level you are in
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6. Understanding Ex – Ex Chart
Your Ex Chart is available under Trader -> Challenge
nth TS Period complete!
By Nov. 28, 2012, this strategy had accumulated 4.96 TS periods in approx. 8 real
months. The strategy clocks 1 TS period every 53 working days!
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7. Understanding Ex – Ex Leaderboard
Visit the Leaderboard to see “Ex” for other traders
Benefit from the filter functionality!
1 Order by TS Elements!
2
Filter by TS
Experience!
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Define the
timeframe
Color, score & relative
rank on this badge
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8. INDEX
1. UNDERSTANDING EX
2. IMPROVING EX
3. QUESTIONS?
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9. Improving Ex
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Ex is an “easy” TS Element. It “only” takes time in the market to improve
• You’ll make valuable mistakes that will discipline your “gut”
• Only time allows you to formulate and optimize your strategy
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Ex CANNOT be increased “artificially”
• Multiple simultaneous trades in a single asset are GROUPED into 1
position and only contribute to Ex as 1
• Multiple simultaneous trades in positively correlated assets: again only 1
independent trading decision (would a good trader open simultaneous
trades in positively correlated assets anyway??)
• Total count of trades is MEANINGLESS – Ex is ONLY driven by TS
positions (see next slide or Trading Journal for an explanation)
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So: focus on all other elements. Doing this will clock hours in the market for your
strategy, and your Ex will build up. Investors will know that you’re more than a
lucky Monkey!
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10. INDEX
1. UNDERSTANDING EX
2. IMPROVING ON EX
3. QUESTIONS?
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11. Questions?
Trading is hard – no wonder there are unanswered questions!
(Why not, together, build a Knowledge Base that answers them all?)
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The Knowledge Base contains TS Mentors’
answers to all your questions!
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Mentors are Traders like you who
enjoy helping out, and are voted
very good at it, AND
•
Trading educators hand-picked for
quality and broker independence,
who pitch their materials
•
Want to contribute? Great!
•
Post an article / Post
•
Ask or answer questions
•
Rate fellow traders’ contributions
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12. Can you do better?
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This article is a “stub” (an unfinished entry that MUST be improved)
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We need your questions & feedback to improve it!
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Feel free to post your questions to the TS Knowledge Base
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Have suggestions?
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theowl@tradeslide.com can’t wait to hear them
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We’d love to credit you for improving our content
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Contributing to this section will boost your mentor score if others like what you post –
helping out will reflect on your community standing, which means
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More traders will visit the URL on your profile
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When they visit, they’ll request your mentoring!
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