What Is Trading Expectancy? Why a High Win Rate Can Still Lose Money
Trading expectancy combines win rate, average win, and average loss. A strategy's long-run edge cannot be judged by how often it is right alone.
Read definitionClear explanations of the market, macro, and trading terms used across MyTrade Academy.
Trading expectancy combines win rate, average win, and average loss. A strategy's long-run edge cannot be judged by how often it is right alone.
Read definitionVolume is the total number of shares, contracts, or units traded over a period. It records what already happened. It does not tell you how well your order can be filled right now.
Read definitionTraining data is the historical sample a rule or model was built and tuned on. A rule fitted to one stretch of history may only describe that stretch, which is why its sample matters.
Read definitionUnit risk is how much one share, contract, or unit loses if price moves from entry to invalidation. It is the bridge between the invalidation distance and the position quantity.
Read definitionValuation is the process of estimating what an asset is worth relative to its cash flows, earnings, risk, and required return. Learn why interest rates matter for stocks.
Read definitionVolatility measures how widely and frequently prices move. It does not tell you how much your account will lose; position size, leverage, and exit rules convert market movement into actual risk.
Read definitionWest Texas Intermediate, or WTI, is the main U.S. crude oil benchmark, with futures centered on delivery at Cushing, Oklahoma.
Read definitionThe Strait of Hormuz is a narrow maritime chokepoint connecting the Persian Gulf to global shipping routes and is critical to international oil and LNG flows.
Read definitionYoY compares a data point with the same period a year earlier, while MoM compares it with the previous month. Learn when each measure is useful.
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