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Thank you for your understanding!
Do you mean expectancy in terms of R as Vantharp describes or do you mean expectancy in dollars as shown in Myfxbook?
i have not heard of vantharp so had a quick read online. i agree he said ' So in the real world of investing or trading, expectancy tells you the net profit or loss you can expect over a large number of single-unit trades. If the total amount of money lost is greater than the total amount of money gained, you are a net loser and have a negative expectancy. If the total amount of money gained is greater than the total amount of money lost, you are a net winner and have a positive expectancy.'i was thinking expectancy in pips for forex.why it is good is after hundreds of live trades you can get a idea of return after all the good and bad trades and costs.i currently have a system that has a expectancy between 2-3 pips after 137 trades on 1 pair usd/jpy.with 20 pip stop loss.i am very happy with that as i can increase lot size more and more if i retain same numbers over more and more time.so is around 10% of stop loss.if you have big stop losses and big take profit your expectancy should should be higher.
to add to confusion there are many traders with negative pip expectancy and positive dollar expectancy. also the other way around.positive pip expectancy and negative dollar expectancy.for a robust system have both and play it safe.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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