A/B testing exits: what did you learn from comparing two rules?
Same entries, two different exits — the cleanest experiment in trading. Comparing fixed targets against trails, or breakeven against leaving stops, on identical trades isolates the exit's contribution.
Have you run one?
- the two exit rules you compared
- the result and what it changed
- how you kept the comparison clean
The risk-reward guide provides the measurement framework.
Background: Risk-reward ratio, win rate and expectancy: the maths behind a trading edge
A high win rate can still lose money. See how win rate and risk-reward combine into expectancy, with break-even win rates and worked examples.
What is a good risk-reward ratio in forex?
There isn't one right ratio. What matters is expectancy, the win rate and ratio together. A 1:2 ratio breaks even at about 33% winners before costs, while a 1:1 ratio needs 50%.
How do you calculate trading expectancy?
Multiply the win rate by the average win and subtract the loss rate multiplied by the average loss. Measuring wins and losses in multiples of the amount risked (R) makes the result easy to compare.
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