Expectancy
The average profit or loss per trade.
Formula
Expectancy = Σ trade P&L ÷ Number of trades
How to read it
Positive means the average trade made money. It is the number a win rate and a payoff ratio combine into.
How to use it
What one more trade is worth on average — the number to compare with costs.
In Kereon
Strategies. The mean dollar P&L of every closed trade; Expectancy % averages each trade's percentage return instead.
Also called: expectancy, expectancy %, average trade.