What's the last rule you removed from your strategy?
Removing rules is harder than adding them, and often more valuable: the filter that blocked good trades, the confirmation that arrived too late, the legacy habit from an old system.
What did you remove?
- the rule and what it was supposed to do
- what prompted the removal
- what improved afterwards
The expectancy guide argues for judging rules by their measured contribution.
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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