Expectancy is the average amount you can expect to win or lose per trade, given your win rate and your average win versus average loss.
How traders use it
- Positive expectancy means the edge is profitable over time.
- It blends win rate with risk-reward.
- A high win rate with tiny wins can still be negative.
See it in dtcharts
Test your risk plan risk-free in the dtcharts terminal with paper trading.