Nov 02 2020 15 mins 4
In today’s Skinny, we break away from the heavy math of [heteroskedasticity](https://www.tastytrade.com/tt/shows/the-skinny-on-options-abstract-applications/episodes/heteroskedasticity-01-22-2018 ) and [ARCH modeling](https://www.tastytrade.com/tt/shows/the-skinny-on-options-abstract-applications/episodes/the-skinny-on-options-abstract-applications-08-10-2020 ) and turn to a super practical topic that every trader will face - how to handle streaks. When you’re in a cold streak, and it seems like everything you do turns negative in a hurry, it can be difficult to stay focused on the probabilities. And when you’re running really hot, where every trade you place seems to work pretty easily, it can be hard not to feel invincible. In either case, it’s very important to remember that what you’re experiencing isn’t a true representation of the statistical reality that you will ultimately experience. Both hot streaks and cold streaks will eventually normalize to their expected values over time.
