Indices · Building an index strategy · lesson 6 of 9 · 8 min read · David Alexander
Expectancy: what an index rule is worth per trade
expectancy
What a rule is worth per trade on average: the win rate multiplied by the average win, minus the loss rate multiplied by the average loss. It is the only number that answers whether a rule is worth trading, and it is routinely displaced by the win rate, which answers nothing on its own.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.