The Chebyshev Inequality states that ~89% of values fall within 3 standard deviations of the mean.
Is this true for the Value Betting Engine, when mean and variance are clearly defined?
THIS IS SIMPLY ANOTHER MEANS BY WHICH TO ILLUSTRATE THAT ACTIONABLE EDGES EMERGE RARELY.
If the average exceeded 89%, it would be safe to assume that either our understanding of price distributions was incorrect or that a flaw had been built into the Value Betting Engine source code.
I was relieved to find that all issues evaluated by the VBE conformed to the expectations as demanded by Chebyshev’s Inequality.