September 6, 2016
The HTML file listed below is full of matrix formulas. You don't need math to understand the message. For me, putting an equal sign on something is a big statement. All one can do after is declare: not equal, and show why. It is not a matter of opinion anymore, it is a matter of proof.
The file looks at the trading problem from a payoff matrix perspective, which in itself can represent any trading strategy whatsoever. It concludes with any trading strategy could also be expressed as the number of trades times the average profit per trade, leaving only two variables to consider when designing trading strategies.
It converts the search for trading profits to a statistical search of price differentials, how to detect them to then try to capture part of those moves. What you want, over the long term, is to average it all out as cash in your portfolio, and not in someone else's.
HTLM file: Payoff Matrix file.
Read it, you should end with: WHAT?