GLOSSARY · RISK & PERFORMANCE
What is Expectancy?
Expectancy is the average amount you expect to make per trade over many trades.
Expectancy (in R) = win rate × average win − loss rate × average loss. Positive expectancy means the strategy makes money over time; negative means it loses no matter how disciplined you are.
EXAMPLE
55% win rate, average win 1.5R, average loss 1R: 0.55 × 1.5 − 0.45 × 1 = +0.375R per trade.
LEARN IT PROPERLY — FREE