What is Luck vs Skill?
Luck versus skill is the question of whether a result came from a repeatable edge or from random chance. Over a small number of trades, luck dominates, so a good run can look like skill and a bad run can hide it. Only a large sample, judged honestly, starts to reveal which one is really driving the outcome.
Why Luck vs Skill matters
Small samples make luck look like skill and skill look like failure, so separating the two prevents drawing the wrong lesson.
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