What is trade expectancy?
Trade expectancy is the amount you’d expect to gain or lose on your next trade.
How does Tradezella calculate my trade expectancy?
Tradezella calculates Trade expectancy using the following formula:
Trade Expectancy ($) = Win (%) x Average Win ($) – Loss (%) x Average Loss ($).
What does my trade expectancy tell me?
If Trade expectancy is calculated over a large sample size, like 100 trades and over, it gives you a good sense of how your strategy performs.
A positive trade expectancy denotes a profitable trading strategy.
If your trade expectancy improves or worsens, analyze why this happened. Did you consciously change something from your strategy?
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