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#New Traders, Understand #Mathematics Of #Profit In Market Before You Put Hard #Earned Money On Risk.
Expectancy = Success Rate x Reward Risk Ratio
Lets Talk About Expectancy Of Short Term Directional Trading System.
Read On (1/n)
Expectancy = Success Rate x Reward Risk Ratio
Lets Talk About Expectancy Of Short Term Directional Trading System.
Read On (1/n)
Success Rate = No Of Profitable Tades/ No Of Loss Making Trades
Reward Risk Ratio = Average Profit Per Trade / Average Loss Per Trade
If Success Rate is 0.5 and Reward Risk 2, Then
Expectancy = 2 x 0.5 =1
For Making Profit, Expectancy Should Be Positive Number (2/n)
Reward Risk Ratio = Average Profit Per Trade / Average Loss Per Trade
If Success Rate is 0.5 and Reward Risk 2, Then
Expectancy = 2 x 0.5 =1
For Making Profit, Expectancy Should Be Positive Number (2/n)
To Calculate Expectancy, You Need Defined System With Rules To Get Success Rate and Reward Risk. If You Have No System To Take Decisions, You Are Hanging In Thin Air and Will Never No Whether You Will Keep Making Or Loosing Money In Future (3/n)
