Expected Value is everything.
Expected Value = (percent winning trades)*(average profit) - (percent losing trades)*(average loss)
Note: The average loss should be a positive number because I already made that term negative with the minus sign.
Expected value is just another way of saying:
Total pips (total gained minus total lost) divided by the number of trades. In other words, average profit.
Bottom line: If you are making money, it's working.
Expected Value = (percent winning trades)*(average profit) - (percent losing trades)*(average loss)
Note: The average loss should be a positive number because I already made that term negative with the minus sign.
Expected value is just another way of saying:
Total pips (total gained minus total lost) divided by the number of trades. In other words, average profit.
Bottom line: If you are making money, it's working.