Trading expectancy calculator
Win rate alone does not tell you if a setup works. Combine it with the size of your wins and losses to see what each trade is worth on average.
Or try it on your chart first, no accountEducational tool, not financial advice. Past results do not guarantee future ones; excludes fees.
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How the calculation works
Expectancy = win rate x average win - loss rate x average loss, measured in R, where 1R is the amount you risk per trade. A positive number means the setup made money over many trades; a negative one means it lost.
Example
Winning 40% of trades with an average win of 2R and an average loss of 1R gives 0.4 x 2 - 0.6 x 1 = +0.2R per trade, about +20R over 100 trades. Winning 30% at the same sizes gives -0.1R. Numbers are illustrative.
Where the numbers come from
Use your own trading journal: at least 30 to 50 logged trades of the same setup, each result written in R. A handful of trades says very little, and past results do not guarantee future ones. This is educational, not financial advice.
Questions
What is a good trading expectancy?
Anything reliably above zero after fees means the setup has an edge. Many traders treat +0.1R to +0.3R per trade as solid; a very high number from few trades is usually luck.
Why measure in R instead of dollars?
R compares trades of different sizes on one scale. If you risk $10 per trade, +0.2R is about $2 per trade on average.
Can a low win rate be profitable?
Yes, if the wins are big enough. At an average win of 3R and loss of 1R, a 25% win rate breaks even and anything above it is positive.
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