Thread: Calculation of positive expectation

This should be mandatory before trading in real. Imagine how much money people would save if they knew this from the start.

I'm glad this topic has been opened, and it's one of those threads that's worth the noise.

I would add that you should also consider the risk/reward. You may have good expectation, but if the variance is very high, you will get frustrated quickly.

Exactly! Variance matters as much as average. A system can have good average but be impossible to hold emotionally.

Most here want �winning systems,� but they don�t even know how to calculate if the system wins. You, at least, already took the first step.

Don't stop studying this. No matter how much you know about technical analysis if you don't know this. It's like driving a Ferrari without knowing which pedal is the brake.

I learned this with sticks. I would have loved to find this thread years ago. Avoid making the mistakes that others have already made for you.

There's no better indicator than a positive expectation.

If you manage to stay faithful to a system with good expectation, you are already ahead of 90%. Now it is your turn to protect your capital and repeat.

Excellent thread. This is value content. I hope many more read it and stop operating without understanding what they are doing.