Glossary · E
What is Expectancy?
The average result per trade, best measured in R over many trades. More informative than the share of winning trades.
In context
R makes trades of different sizes comparable and summable. Two +$200 wins are very different achievements if the risks were $100 and $400: in R, they are +2R and +0.5R. Once results are in R, you can compute expectancy: the average R per trade over many trades. That number, not the win rate, tells you whether a process has any edge at all.
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