Experience score 10 = 12 D-periods.
In order to collect 1 D-period of experience, any trader needs to meet 2 criteria:
- 15 trading days => Days in which the trader has operated (buy, sell, partial sell, etc.)
- 18 representative trading decisions.
We measure how representative a decision is based on 2 factors: D-leverage and Duration. In fact, we calculate every single position’s representativeness with the following formula: Market Exposure = D-leverage * Sqrt Time.
We grant 1 full representative decision to the position with the highest exposure within the last 15 trading days. With this one acting as a benchmark, we calculate how representative the other positions, opened in the last 15 trading days, are.
That part can be found in ‘Education’ section of the website. But I needed a little bit clearer explanation. Here goes my communication with @JesusDarwinex.
Market Exposure = D-leverage * Sqrt Time…for example when D-leverage is 21.96 and position duration is 51min…what would be exact Market Exposure calculation? I need this to understand so I can better understand what 1 full representative trading decision represents and how the calculation works so I can see how my positions influence D-period calculation.
Good afternoon Lukas!
Based on the data provided, the market exposure of this particular position will be 156.82 (21.96*sqr 51). We then, calculate the market exposure of all the positions closed over the last 15 trading days -duration in minutes- and use the one with the highest market exposure as a benchmark. This position -the most exposed- will be granted 1 representative trading decision and we will calculate the “representativeness” for the rest.
Let´s imagine that the position with the highest exposure has yielded a value of 1000. We grant this position 1 representative decision. In order to calculate the “representativeness” of the position in the above-mentioned example, we need to divide it by the most exposed one: 156.82/1000 = 0.15682. Therefore, these 2 positions make 1.15682 representative decisions.
In order to get a D-period, you´ll need 18 in more than 15 trading days as explained in this article.
May I wish you a great afternoon!
After this I think everyone should be clear how Experience is calculated
@JesusDarwinex maybe you could add the explanation you gave me with the example in some form to the education section to make the explanation even clearer