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What are your thoughts
Expectancy defines whether a system is profitable long-term. Formula concept: (Win rate × average win) − (loss rate × average loss) You can: Lose more trades than you win and still be profitable Win most trades and still lose money If expectancy is positive, time becomes your ally. If expectancy is negative, time guarantees failure.
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What are your thoughts
Many traders obsess over win rate, but expectancy is what truly determines long-term profitability. A trader can have a low win rate and still make money if their winners are significantly larger than their losers. Expectancy measures how much you can expect to make or lose per trade over a large sample size. Once you understand expectancy, you stop focusing on individual trades and start thinking in probabilities, which is the mindset of a professional trader. 💯🔥📊
Expectancy is one of the most important metrics in trading because it measures the profitability of a system over a large sample of trades. A trader doesn't need a high win rate to succeed—what matters is having an edge where average winners outweigh average losers. Once you understand expectancy, you stop focusing on individual trades and start thinking in probabilities and long-term results. 📈💯🔥
It’s not about being right. It’s about being profitable over time.