The Angular or Tangent Return
Theta 45 is a true probability trading indicator.
The algorithm creates a probability space in real-time, to measure the frequency of daily returns.
But you cannot use just any metric to measure the daily return.
The change in price, the percentage and even the log return, are all inadequate to create a sample space.
The angular return maps the infinite possibilities of the percentage return, onto a finite range, that can then be used to create a sample space.
The algorithm creates a probability space in real-time, to measure the frequency of daily returns.
But you cannot use just any metric to measure the daily return.
The change in price, the percentage and even the log return, are all inadequate to create a sample space.
The angular return maps the infinite possibilities of the percentage return, onto a finite range, that can then be used to create a sample space.