What is Positive Expectancy? The closest a trader can hope to come to a “Holy Grail” of profitable trading is a trading system with a positive expectancy. A trader’s focus should not be on predictions, stock picking, opinions, or being right all the time. The best focus is on creating a quantified system with an edge that is repeatable that creates small wins, big wins, and small losses that average out to profitability over time. A positive expectancy means that when you average out all the wins and losses you make money. It means if you divide your total profits by your total trades and have a positive outcome on ... (full story)