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The law of large numbers is a fundamental theorem of probability theory, which tells us that if we execute many operations on the same system, the frequency obtained tends to be closer to the expected probability. In other words, the average of the results obtained from a large number of operations will tend to be closer to the expected value.
In a few operations the dispersion is wider while with several operations the dispersion is smaller and this is the one that best concentrates the data towards the expected probability.
Here you will learn about:
• The law of large numbers in trading
• Types of distribution of trading results
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