How do you handle winning streaks psychologically?
Winning streaks feel great and are quietly dangerous: confidence inflates, size creeps up, rules loosen. The streak's psychological management matters as much as its trading.
What's your streak protocol?
- how you keep your process steady while winning
- the size and rule drift you watch for
- how you prepare for the streak to end
The expectancy guide explains why streaks are statistical, not personal.
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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