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Frequently Asked Questions

Q. How do you calculate expectancy?

It's (win rate × average win) − (loss rate × average loss). A positive value means a long-run edge; a negative value means the account shrinks with repetition.

Q. Is a high win rate fine even with a low risk/reward ratio?

Not necessarily. What matters is whether the product of win rate and risk/reward — expectancy — is actually positive. If the ratio is too low, even a high win rate can leave expectancy negative.

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