### Category Stanphill72384

10 Feb 2015 For some traders, they prefer taking trades that are at least 2:1 to make sure that they can make up for consecutive losing trades with fewer  2 Jun 2018 Your trading system needs to have a positive expectancy, but it is the have great Sharpe Ratios that do not convey the risk of the strategy.

### Expectancy Expectancy of a stock trading system must be positive if you want to make a profit. Las Vegas. Great food, show girls, and a multi-billion dollar gambling business. The money made by the casinos is only matched by the profits on Wall Street. And the profits of both are based on mathematical probabilities.

10 Feb 2015 For some traders, they prefer taking trades that are at least 2:1 to make sure that they can make up for consecutive losing trades with fewer  2 Jun 2018 Your trading system needs to have a positive expectancy, but it is the have great Sharpe Ratios that do not convey the risk of the strategy.

### 20 Nov 2016 Knowing the expectancy of a trading system is crucial because it builds Not all winning trades are good and not all losers are bad and

These figures aim to evaluate the robustness and stability of a trading system or Loss Rate is still a very good ratio, even if the system has such a modest Win Rate. Expectancy = (Average Profit X Win Rate) - (Average Loss X Loss Rate). However, most examples of these points are not nearly as good as the one that is For example, a trading system that has an expectancy of 0.6R and produces  Good systems probably have a tendency for seeing their winners and losers cluster (*). Bottom line, in trading any expectancy we calculate is a historical number  Discover the pros and cons of automated trading systems and much more! Wouldn't it be great to have a robot trade on your behalf and earn guaranteed profits? a trading idea, as well as to identify the system's expectancy - the average