Expectancy in Forex
A clear definition of Expectancy, with practical context for reading markets and making better trading decisions.
Definition
The average outcome a strategy can expect over many properly executed trades, combining win rate and average win/loss. One trade cannot prove it.
Practical forex example
A system can win less than half the time and still have positive expectancy if its average wins are sufficiently larger than its losses.
Why Expectancy matters
Understanding Expectancy helps traders interpret market information, plan decisions, and manage risk with more context.
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