# Can someone explain Z-score to me....

Dec 23, 2011 at 16:10
3,697 Views
8 Replies
Member Since Oct 28, 2011   25 posts
Dec 23, 2011 at 16:10
Can someone explain Z-score probability including what a negative number means.
Member Since Apr 11, 2011   202 posts
Dec 24, 2011 at 07:36 (edited Dec 24, 2011 at 07:40)
If you hover your mouse over 'Z-Score' on your account(s) page(s), it explains the use of it with regards to MyFxBook. Here it is strictly used to estimate the probability of a win followed by a loss, or a loss by a win. A stable number means you have a good, consistent trading system. You don't want 'randomness' in a system.

Z-score is a principle of statistics-- when I took my college statistics class, this was a primary topic. Basically, z-score is a reading of the distribution of data for probability in a statistical sense. The z-score is calculated by taking a data point and subtracting the distribution mean and dividing the total by the standard deviation. A positive number means that the data is higher than the mean, and a negative number means the data is below the mean. The best example of this is a class with several grades. Each grade is assigned a z-score according to the distribution mean and standard deviation. The higher the z-score, the higher the variation of that student's grade from the mean.

There are other methods by which probability can determine if your next trade will be a winner or loser, but Z-score is a simple calculation that takes into account all your current numerical data. I'm really not the most qualified person for a detailed explanation-- I barely passed my Stats class and only made it because my project was pretty good (determine differences in gasoline prices in various regions of the city). 😄
Member Since Jan 18, 2014   12 posts
Jan 19, 2014 at 19:23
what is number the best z-score in our strategy?
Member Since Nov 24, 2015   1 posts
Dec 17, 2015 at 07:39
my z-score is

Z-Score (Probability): 1.34 (81.97%)

- What does it mean ?
- How bad is my system ?
- How do I use it to improve my system ?

Thanks alot.
Member Since Apr 29, 2016   1 posts
Jul 26, 2017 at 06:43
Always improve, Always Learn
Member Since Jun 01, 2017   13 posts
Jul 27, 2017 at 11:44
Does anyone have an equation for Z score?
Member Since Apr 26, 2021   1 posts
Jul 17, 2021 at 15:56
minhfx2 posted:
my z-score is

Z-Score (Probability): 1.34 (81.97%)

- What does it mean ?
- How bad is my system ?
- How do I use it to improve my system ?

Thanks alot.
😀
Member Since Feb 25, 2021   6 posts
Oct 07, 2021 at 18:24
This is the first time I've heard of this method.