Expectancy is the average result you can expect per trade over many trades, combining win rate with the size of wins and losses. Positive expectancy tends to make money over volume.
📘Concept
The one number that ties it together
Expectancy = (win rate × average win) − (loss rate × average loss). It folds win rate, R, and size into a single answer: how much you make, on average, per trade.
💡Pro insight
Positive expectancy plus enough trades is the whole game. With it, drawdowns are temporary; without it, no risk management or position sizing can save the account over time.
