tasty Extras - December 22, 2020 - Exploring the Normal Distribution
The normal distribution is a fundamental part of statistics that has a direct connection with modern day trading. The normal distribution gives us an average (mean) and a standard deviation (volatility). The average is what we can expect to happen after a lot of trials from the same distribution of events (long term expectations), while the standard deviation tells us with what probability we can expect a single data point to lie within the distribution (short term risk).