Expectancy

What it means

Expectancy combines win rate with average win and average loss to estimate long-run performance per trade.

What to watch

Expectancy should include real-world frictions such as commissions and slippage, not just idealized fills.

Where traders usually run into this

Expectancy is most useful once it is tied to a concrete page, chart decision, or workflow question.

• Win Rate keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Risk-Reward Ratio keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Commission and Slippage Calculator keeps this term attached to a real tool instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Commission and Slippage Calculator. That page is the fastest way to see how expectancy shows up in a real tool workflow.