If you really insist on defining a “floor” based on historical lows, then this is a more correct way to do it: use the observed asymmetric distribution of deviations and fit it properly.


But again, this is only an illustration of typical historical deviations. It is not an inviolable floor, and it should not be confused with the power law itself.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned