Trade expectancy, win rate and reward-to-risk
Winning more often does not necessarily produce profit. Connect frequency, outcome sizes and costs without treating history as a promise.
Choose a question: read a chart, size a trade, review your account or validate a strategy. Each guide connects to a practical tool or function.
Winning more often does not necessarily produce profit. Connect frequency, outcome sizes and costs without treating history as a promise.
A useful backtest checks reproducible rules, costs and data not used for tuning. An attractive historical result is not enough to trade.
Both averages smooth prices but weight observations differently. Understand responsiveness, lag and context before relying on a crossover.
Stochastic compares the close with the recent range. Understand its lines and why overbought or oversold readings are not automatic trade instructions.
More paths reduce some numerical noise, not uncertainty about whether the market follows the model. Distinguish simulation, validation and execution.
Profit factor measures profit per unit lost in a sample. Learn the calculation, cost treatment and how to read it alongside account risk.
A stable balance can conceal open losses. Distinguish the curves and required recovery without confusing deposits with trading returns.
Record the plan before entry and review execution afterwards. A journal explains decisions; an account audit checks historical trading data.