How many trades per week does your strategy actually produce?
Trade frequency is a strategy property people forget to plan: too few trades and variance dominates, too many and costs accumulate. Knowing your expected frequency prevents both overtrading and doubt.
What's yours?
- your average trades per week
- how frequency changes across regimes
- what you do in the quiet stretches
The expectancy guide explains sample sizes and variance.
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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