Hello,
My second time doing a back test and need to confirm a few things.
I am struggling with calculating Average Reward vs Average Risk, Expectancy. My reward vs risk varies per trade I take. It varies between 0.4 and 1 (yes, I know R:R 0.4 is not good performance, I am working on this.)
Did I calculate the Average Reward and vs Average Risk correctly? And expectancy?
Average Reward I calculated with Total Win / Total Number of trades. Same for Average Risk.
Thank you kindly for help in advance.
My second time doing a back test and need to confirm a few things.
I am struggling with calculating Average Reward vs Average Risk, Expectancy. My reward vs risk varies per trade I take. It varies between 0.4 and 1 (yes, I know R:R 0.4 is not good performance, I am working on this.)
Did I calculate the Average Reward and vs Average Risk correctly? And expectancy?
Average Reward I calculated with Total Win / Total Number of trades. Same for Average Risk.
Thank you kindly for help in advance.