# Probability Distributions

## Tutorial: Using Tradewell to Assess Strategy Risk

This **2-minute** video teaches you how to use the probability distributions to get a better handle on the risk-reward tradeoff of your trading strategy.

👇 Click the link below to open the platform and apply what you just learned

### Probability Distribution Insight Definitions

### Kurtosis

The height and thickness of the peak of a frequency-distribution curve. High values are associated with fat tails, which imply occasional extreme returns.

### Skewness

The extent to which the distribution of returns for your backtested strategy varies from a normal distribution. Positive skewness implies that extreme returns with values above the mean are likely to occur more frequently than extreme returns with values below the mean.

### Mean Return

The average forward of a given time interval for all of the signals triggered by your trading strategy within an observed lookback period.

### T-Test

A statistic used to determine if there is a significant difference between the mean forward return of your trading strategy and the mean forward return of all data data points for an asset within a single lookback period.

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