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Consistency

Posted By: Don Schlesinger
Date: 27 Aug 01, 7:58 am

In Response To: Handicappers, Variance and Consistency. (lepto)

"Is there an statistical way to define this "consistency"."

Sure. Take the returns, year after year. Take the mean return. Then take the standard deviation of that mean return. You're looking for small variability around the mean. You prefer 55, 56, 57 to 48, 56, and 64, for example.

You can also consider maximum drawdown, which is the largest difference between the handicapper's "peak" and "trough" for any given period studied. Smaller is better.

Don

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Messages In This Thread

Handicappers, Variance and Consistency. -- lepto -- 27 Aug 01, 6:39 am
Consistency -- Don Schlesinger -- 27 Aug 01, 7:58 am
Clarifying my question: -- lepto -- 27 Aug 01, 8:16 am
Clarifying Don's response -- Math Boy -- 27 Aug 01, 9:03 am
In the financial markets, . . . -- Don Schlesinger -- 27 Aug 01, 5:39 pm
Tsk, tsk -- Kim Lee -- 27 Aug 01, 1:54 pm
Don't understand your comment at all -- Don Schlesinger -- 27 Aug 01, 5:44 pm
Streaks -- Revere14 -- 28 Aug 01, 1:43 am
Sharpe -- Editor -- 28 Aug 01, 8:51 pm
Don't Bother Kim.... -- Dr Wogga -- 30 Aug 01, 11:13 am
Yup -- Don Schlesinger -- 30 Aug 01, 2:17 pm

 

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