R factor 2

0.5024 0.5020 3 0.5018 0.5026 0.5035 0.5023 4 0.5008 0.5034 0.5024 0.5015 5 0.5041 0.5056 0.5034 0.5039 Control Charts for Variables Special Metal Screw Sample Sample Number 1 2 3 4 R 1 0.5014 0.5022 0.5009 0.5027 2 0.5021 0.5041 0.5024 0.5020 3 0.5018 0.5026 0.5035 0.5023 4 0.5008 0.5034 0.5024 0.5015 5 0.5041 0.5056 0.5034 0.5039 0.5027 – 0.5009 = 0.0018Control Charts for Variables Special Metal Screw Sample Sample Number 1 2 3 4 R 1 0.5014 0.5022 0.5009 0.5027 0.0018 2 0.5021 0.5041 0.5024 0.5020 3 0.5018 0.5026 0.5035 0.5023 4 0.5008 0.5034 0.5024 0.5015 5 0.5041 0.5056 0.5034 0.5039 0.5027 – 0.5009 = 0.0018Control Charts for Variables Special Metal Screw Sample Sample Number 1 2 3 4 R 1 0.5014 0.5022 0.5009 0.5027 0.0018 2 0.5021 0.5041 0.5024 0.5020 3 0.5018 0.5026 0.5035 0.5023 4 0.5008 0.5034 0.5024 0.5015 5 0.5041 0.5056 0.5034 0.5039 0.5027 – 0.5009 = 0.0018 0.5041 - 0.5020 = 0.0021Control Charts for Variables Special Metal Screw Sample Sample Number 1 2 3 4 R 1 0.5014 0.5022 0.5009 0.5027 0.0018 2 0.5021 0.5041 0.5024 0.5020 0.0021 3 0.5018 0.5026 0.5035 0.5023 0.0017 4 0.5008 0.5034 0.5024 0.5015 0.0026 5 0.5041 0.5056 0.5034 0.5047 0.0022 Control Charts for Variables Special Metal Screw Sample Sample Number 1 2 3 4 R 1 0.5014 0.5022 0.5009 0.5027 0.0018 2 0.5021 0.5041 0.5024 0.5020 0.0021 3 0.5018 0.5026 0.5035 0.5023 0.0017 4 0.5008 0.5034 0.5024 0.5015 0.0026 5 0.5041 0.5056 0.5034 0.5047 0.0022 R = 0.0021R = 0.0021 UCLR = D4R LCLR = D3R Control Charts for Variables Control Charts – Special Metal Screw R-ChartsControl Chart Factors Factor for UCL Factor for Factor Size of and LCL for LCL for UCL for Sample x-Charts R-Charts R-Charts (n) (A2) (D3) (D4) 2 1.880 0 3.267 3 1.023 0

The mappings of the other two points in the image. So I know, because I'm centered at the origin, that00:07:57x, y maps to rx, ry. And I have an example of that with A and A prime. So A is negative 6, negative 2, which maps to negative 9, negative 3. So rx equals negative 9. But x is negative 6, so r times negative 5 equals negative 9. Divide both sides by negative 6 and I get the r equals00:08:32negative 9 over negative 9, or r equals 3/2. So I can use this scale factor to find the mappings of the other points. B prime will be at negative 2 times 3/2 is negative 3. And 2 times 3/2 is 3. So B prime is at negative 3, 3. Here's B prime. And C prime is at 4 times 3/2, which is 12/2,00:09:16which is 6 and 0. So here is C prime. So I have my other two points in my image figure A prime, B prime, C prime. In this case, my positive scale factor was greater than 1. And it was an enlargement. So it is always true, actually, that when my00:09:42positive scale factor is greater than 1, it results in an enlargement. Wrapping up for this section, remember a positive scale factor less than 1 results in a reduction. A positive scale factor equal to 1 results in an identity dilation. And a positive scale factor greater than 1 results in an enlargement.00:10:00Nice job working with those dilations. Stay tuned for more.PROFESSOR: Welcome back to Dilation. The objective for this section is to use an algebraic rule to describe or perform a dilation in the coordinate plane. So what if we have a negative scale factor? Well, when a scale factor is negative, the dilation of each point occurs along the opposite ray, and results in a point reflection across the center of dilation of the corresponding positive dilation.00:00:26So what does this mean? Let's take a look at an example. Draw the image of segment AB under a dilation with respect to the origin that has a skill factor of negative 2. So here's our center of dilation. Let's take a look at just the endpoints of AB. A is currently at 2, 4. And we can use the same rule, multiplying by negative 2 each00:00:52of those coordinates to get that A prime is at 2

Factor of less than 1 means that the trading strategy is a losing strategy.A profit factor of 1 to 1.50 means that the trading strategy is moderately profitableA profit factor of 1.50 to 2.0 means that the trading strategy is highly profitableA profit factor above 2 means that the trading strategy is extremely profitable.Let’s take an example with the following metrics:Probability of Win: 55%Avg Win: $ 500Avg Loss: $ 350Can you figure out the Profit Factor of this system?Profit Factor = (.55 x 500) / (.45 x 350)= 1.75This system has a Profit Factor of 1.75, a highly profitable trading strategy.Let’s take a look at one more example:Probability of Win: 45%Avg Win: $ 650Avg Loss: $ 550Can you figure out the Profit Factor of this system?Profit Factor = (.45 x 650) / (.55 x 550)= 0.97This system has a Profit Factor of 0,97, meaning that this is a losing strategy.R MultiplesThe concept of R Multiples was first introduced by renown psychologist Dr. Van Tharp. R Multiple sounds like an esoteric term but it is fairly straightforward and easy to understand.R Multiple essentially measures Risk to Reward for a particular trade. R stands for Risk and is usually denoted as 1R ( the risk in the trade). The multiple of R is your reward as compared to your Risk. So, a 3R trade for example, would simply mean that for every unit of risk you are taking, your potential profit is 3 times that risk or 3R.As you can see by using R multiples, it allows us to standardize our risk measures and easily gauge the Risk profile of a trade.Let’s take a look at a few examples to demonstrate:A trade with a 50 pip stop and 100 pip target is a 2R trade.A trade with a 70 pip stop and a 210 pip target is a 3R trade.A trade with a 120 pip stop and a 60 pip target is a 0.5R trade.I think you get the basic gist of it now.By combining the Risk to Reward and using the R Multiple we can quickly and easily assess the viability