Quote:
Originally Posted by qwertyqwertz
Hi folks,
I wonder how to solve the example 5.3 on page 174? I tried to come up with the right solution, but the outcome doesn't make sense.
These are the given numbers:
Hitrate: 52.1%
Number of test days: 500
The correct result is a cumulative profit of 22%.
How do I get 22%?
Thanks a lot and have a nice day!

The hit rate is the percentage of days you got the direction right, while the profit takes into consideration how much money you made (or lost) when you got the direction right (or wrong). You can read the 22% directly off the figure on page 175 as the final value at day 500.