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In our last article on equity curve trading, we looked at the most common form of trading the equity curve, using a rolling average of the account’s equity. Today, we will focus on rolling expectancy ratio, a powerful use of expectancy that can drastically improve your trading strategy.
What is expectancy and why is it important to your trading?
Expectancy is the ratio of reward (or amount you stand to gain) per dollar of risk. Another way to say it is how much you make or lose (on average) per dollar amount risked. We will use a 30 trade rolling ... (read more)