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.
Glossary
The average amount a strategy is expected to make or lose per trade over time.
Expectancy combines win rate with average win and average loss to estimate long-run performance per trade.
Expectancy should include real-world frictions such as commissions and slippage, not just idealized fills.