Risk Management

Expectancy Formula

Learn how win rate, average win, average loss, and risk-to-reward work together to measure the quality of a trading process.

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Key terms

risk-managementexpectancyexpectancy-formulaadvancedwin-rateaverage-winaverage-lossrisk-to-rewardr-multipletrade-journalsample-sizeperformance-reviewdemo-practiceeducational-only