This segment of Options Jive discusses how we can reach the theoretical statistics we cite in studies.
In many past studies, we have cited the average P/L. This average P/L represents the theoretical mean for a distribution of trades. To reach the average P/L, we want the distribution of our trades to be as close as possible to the average P/L (theoretical mean).
This means we want to reduce the variance of our trades so most are centered around the average P/L. Based on the Central Limit Theorem, the more we trade, the smaller the variance. Therefore, reaching a performance equivalent to the cited statistics involves increasing the number of trades.