Positive Expectancy: A system (or game) that will make money over the long term if played at a risk level that is sufficiently low. It also means that the mean R-value of a distribution of R multiples is a positive number. If you’ve read any of Dr. Tharp’s books, you know by now that it is much more efficient to think of the profits and losses of your trades as a ratio of the initial risk taken (R). Let’s just go over it again briefly, though: One of the real secrets of trading success is to think in terms of risk-to-reward ratios every time you take a trade. Ask yourself, before you take a trade, “what’s the risk on ... (full story)