A most important formula for our trading is the Expectancy Formula. Its basic formulation is in dollars terms.
(Average Dollar Win/Win Rate) - (Average Dollar Loss/Loss Rate) = Expected Profit per Trade
Let’s say:
My AVG$win is $750.00
My Win rate is 48%
My Avg$ loss is $183
My Loss rate is 52%
My avg trades per year is 300
My expected $ […]
