Topic: breaking 80/20 rule can help find SSS Strategies
Hello pop 80-20 rule is considered a rule of thumb in the world this means that 80% of profits come from 20% of customers , or from 20% of actions .... etc in other words the max gain in life come from the smallest no of actions we do
BUT if we incorporate the anti 80/20 rule as a filter i think it will add a lot to the quality of our strategies , its simply insure that the profits spread ed equally as much as possible from all trades
so for example : if we have a filter that reject strategy where 40% of profits come from 10% of winning trades '' the same rule apply for losses as well''.
Another application for the same concept ( another filter ) its function to insure that trades are well distributed over the time so we can filter strategies that stay inactive for long time
I think the two filters together
distribution of profits over trades & distribution of trades over time can bring Strong, Secure AND Stable Strategies over the time