What is Expected Value

A Statistical Edge in Trading is a Strategy or System With Positive Expected Value: When people try to find or develop a statistical edge for trading stocks, options, futures, forex, cryptocurrencies, or whatever they prefer, they often latch onto win rates - immediately assuming that a 50%+ win rate automatically…

Expectancy & Win Rate Are NOT the Same Thing: Trading expectancy is an equation that tells us how much, on average, we can expect to profit on each trade that we make. In order to make money, we want to find systems that have positive expectancy and avoid systems that…