Thread: How important is a knowledge of maths?

Hey

As name: Just how important is an understanding of maths in forex trading?

(not very basic maths I mean more advanced mathematics)

Thanks

I must take my nap now. I have been up too long. I want to thank you all and thought. It is wonderful how useful google could be when you can't remember the answers that are real.

Originally Posted by ;

You're right. Deficiency of sleep/shooting from the hip got me . 2*2*2*2*2*2=64. duh.

There are 64 possible results (strings of 6 trades), among which is 6 winners in a row. Odds are 1/64.

So if you do 64 strings of 6 transactions (384 trades) then you should have 6 winners in a row somewhere in there.

That is logical. But that does not ensures that we'll not experience more than 6 winners in a row? If we do 128 strings of 6 transactions. . We may have 12 losers in a row, etc ....

The question is, will our equity endure that 12/24/36 losers in a row (if it ever happens)?

Originally Posted by ;

My thoughts is on holiday so I can not figure it out but I believe you are wrong. From the California Super Lotto the likelihood of picking 5 correctly out of 47 amounts is 1,592,937 to 1. My logic relies on this http://www.calottery.com/Games/Super...lus/HowtoPlay/.

I'm obtaining 47*46*45*44*43 = 18,407,200. Way off.

The site says you have a 1 in 49 chance of choosing the mega. What's that if there are 27 amounts?

They say the lottery is merely a tax on the ones that are bad at math.

Originally Posted by ;

The website says pick 5 of 47, then 1 of 27 for the mega number.

I am getting 47*46*45*44*43*27 = 4,969,960,000. One in about 5 billion.

They say the lottery is just a tax on those that are poor at math.

But were not looking at 5 out of 47 after which 1 from 27. We're looking for 5 from 40. Right? http://www.lottogenie.com/html/odds.html. We can figure the likelihood of information. ???

I copied this off the other site.

Originally Posted by ;

1/40 × 1/39 × 1/38 × 1/37 × 1/36 = 1/78960960
So, at this time, your probability of winning are 1 in 78960960. However, as it's possible to pick your winning numbers in any order, your odds of winning will be somewhat better than that. Your chance betters from the amount of ways a succession of 5 numbers can be composed, and for 5 numbers will be 5! (5 factorial) or 120. Split 78960960 from 120 into account for this, to get 658008.
In other words, there are 120 distinct ways the 5 numbers you select can be filled out on your own lottery ticket--should you decide on your 5 numbers correctly, any of the manners will make a winning ticket.

Originally Posted by ;

That Is the answer.

No, my response is correct.

Originally Posted by ;

No, my answer is accurate.

Yes, you are.

In lottery order is not required.

Let us take another bite.

On a 50:50 win/lose foundation, how many transactions it takes when a direct 6-time reduction will likely to happen?

Originally Posted by ;

I copied this off another site.

Yup, I find now, that's correct. This is logical.

If you'd like to select them in order, then multiplying will be proper.

Quite simply, you've got 5 of 40 opportunities to acquire the one of the figures, 4 in 39 to get another of these, etc..

5/40*4/39*3/38*2/37*1/36 = 1 in 658,008

So for your CA site it would be,

5/47 * 4/46 * 3/45 * 2/44 * 1/43 = 1 in 1,533,939. Didn't obtain their answer exactly....

But if I put in the mega, then I get their number.

5/47*4/46*3/45*2/44*1/43 * 1/27 = 1 in 41,416,353

That's the right means to do it.

Originally Posted by ;

No, my response is correct.

Yup, you did it right.