Strategy hoppers: what finally made you settle down?
Hopping strategies every few weeks is the classic beginner disease: the moment a strategy loses, it's abandoned for a new one, and no strategy ever gets a fair sample.
Former hoppers:
- how many strategies you cycled through
- what made you commit to one
- how you knew the staying was working
The expectancy guide explains the sample sizes hoppers never collect.
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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