Monthly reviews: what do you look for in a month of data?
A month is the smallest chunk with statistical shape: enough trades to see win rate, R totals, drawdowns and rule violations. The monthly review turns the month into decisions for the next one.
What's your review?
- the metrics you pull together
- the patterns you hunt for
- the changes you've made from monthly reviews
The expectancy guide defines the metrics to track.
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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