How Simpson’s Paradox Reverses Success Rates
Summary
Hollow Point Trading shares a video explaining how a higher overall success rate can mask lower rates within every subgroup. Its hypothetical comparison shows how results shift across easier and harder cases, illustrating why traders should examine grouped data rather than rely only on aggregate statistics.
https://youtu.be/4-idqfpe83I
A higher total success rate can reverse inside every subgroup #Simp...
A higher total success rate can hide lower rates in every subgroup. In a hypothetical comparison, approach A succeeds in eighty of one hundred easier cases. Approach B succeeds in nine of ten: eighty percent versus ninety percent. For harder cases, A succeeds in one of ten, while B succeeds in twenty of one hundred: ten percent versus twenty per...
