Skewness is one of the less-known but practical measures from statistics that can be used in trading. It is defined as a measure of the asymmetry of the probability distribution of a random variable around its mean. Financial mathematics and most quantitative models assume some kind of symmetric distribution of random variables, such as near-normal distribution, which would have zero skewness. From the perspective of traders, it is always interesting to look for extreme values of skewness which attributed to non-expected outcomes. When you bet a reasonable amount of capital on non-quite-probable but good-calculated ... (full story)