WickCheck / Trading school / Expectancy

ExpectancyIntermediate

The average result per trade, usually in R. Positive expectancy means the strategy makes money on average.

What it means

Expectancy = win rate × average win − loss rate × average loss. +0.2R per trade over 200 trades is +40R. WickCheck shows it as the average trade.

How to spot it

Common mistakes

Related terms

Profit factorGross profit divided by gross loss. Above 1 made money, below 1 lost money.…R and R-multipleR is the amount you risk on a trade. A result of +2R means you made twice what y…Win rateThe share of trades that make money.…
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