What is Expectancy?
Expectancy is the one of the most important statistics in trading. Expectancy is how much you expect to make per trade. If you have an expectancy of 0.3 that means you make 30% of your average risk per trade. If you risk $1000 per trade, then you would receive $300 on average for EVERY time you took a trade.
The baseline for a worthwhile &...
Intro, you can skip this part but I think it would be interesting for you to take a quick look:
Statistics estimates and formulas? Trading is mostly about emotions, not statistics estimates and formulas.
Most people do not need all of those formulas, they don't need to make plenty of stats and estimates, but just focus on discipline and emotion control.
I got...
I already posted that the average trader at a big broker (FXCM) had a negative expectancy. Their risk rewards are around 0.5-0.6 with winrates of ~ 60%. This means for each dollar they make they lose 1.22. Their Profit Factor is ~ 0.82.
4 lose 6 wins each win is $30 each lose is $55 ==> Profits = 180 Losses = 220.
So this explains why the average loses. But not...
