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isnt it as follows?


($Avg W trade x %w) - ($Avg L trade x %L)

= $expentancy (x)


x = $expectancy

y = risk per trade (ie. 2% of 50,000 account, $1000 would be y)

z = %expectancy (x/y)


lets plug numbers into an example (applying same %risk and same trading account as above):


($125 x 52%) - ($100 - 48%) = $17

x = $17

y = $1,000

z = 1.7% ($17/$1,000)


therefore every trade you make you can expect an average return on risk of 1.7%


can someone correct me if i am wrong?


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