The Chebyshev Inequality states that ~89% of values fall within 3 standard deviations of the mean.

Is this true for the **Value Betting Engine**, when mean and variance are clearly defined?

SYMBOL | CHEBYSHEV INEQUALITY |
---|---|

AGI | 89% |

AUY | 86% |

AXU | 90% |

BVN | 89% |

CDE | 87% |

DYLLF | 83% |

EQX | 82% |

EXN | 85% |

FSM | 91% |

GAU | 88% |

HCHDF | 91% |

HL | 88% |

HMY | 90% |

IAG | 90% |

MNRLF | 86% |

USAS | 86% |

AVERAGE | 88% |

RESULT: TRUE

THIS IS SIMPLY ANOTHER MEANS BY WHICH TO ILLUSTRATE THAT ACTIONABLE EDGES EMERGE RARELY.

If the average exceeded 89%, it would be safe to assume that either our understanding of price distributions was incorrect or that a flaw had been built into the Value Betting Engine source code.

I was relieved to find that all issues evaluated by the VBE conformed to the expectations as demanded by Chebyshev’s Inequality.