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What Is Trade Expectancy, and How Does It Help?
What Is Trade Expectancy, and How Does It Help?

nderstanding trade expectancy and how it can help you evaluate your trading strategy.

Team avatar
Written by Team
Updated over 3 months ago

Trade expectancy is the amount you’d expect to gain or lose on your next trade. It provides insight into the overall performance of your trading strategy.

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?

When calculated over a large sample size, like 100 trades or more, trade expectancy gives you a reliable sense of how your strategy is performing.

  • A positive trade expectancy indicates a profitable trading strategy.

  • If your trade expectancy changes, it’s important to analyze why. Did you make any adjustments to your strategy?

How to add this widget to your TradeZella dashboard:

Follow the instructions in this help article to add the trade expectancy widget to your dashboard.

Need further support? Contact our support team at support@tradezella.com

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