Expectancy
TradingAverage result per trade: win% × avg win − loss% × avg loss.
Example
40% win rate, $200 win, $100 loss = +$20 per trade on average.
Common misconceptions
- That it is a prediction (it is a historical estimate)
Average result per trade: win% × avg win − loss% × avg loss.
40% win rate, $200 win, $100 loss = +$20 per trade on average.