Performance statistics · Pro
Trading expectancy
Also searched as: expected payoff, expectancy
What does Trading expectancy mean?
Trading expectancy is the average result implied by a strategy’s win frequency and average gains and losses. It can be expressed in money or risk units.
Example
A 45% win rate with $200 average wins and $100 average losses gives $35 per trade before costs.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Historical positive expectancy is an estimate, not a promise that the next trade or future period will be profitable.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.