Categories: Formula

Stratified Sampling Formula for Forex Trading

Stratified sampling is a process of selecting a sample from a larger population where the sample is divided into different groups, or “strata,” based on one or more characteristics of the population. In a stratified sample, the sample size of each stratum is proportional to its representation in the overall population. This type of sampling can be used to accurately represent a population when a certain characteristic is difficult to measure or when the population has multiple characteristics. One example is when working with foreign exchange (forex) markets, where a trader can use stratified sampling to gain an accurate understanding of exchange rate volatility. By stratifying the population according to the currency pairs being traded, the trader can use specialized stratified sampling formulas to create a much more accurate representation of the market.

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