A practical learning path
Trading Performance & Expectancy
Review win rate, expectancy, profit factor, net R, and strategy tags. Learn which metrics answer which trading questions.
Start with the question, then the number.
A win rate tells you frequency. Expectancy adds outcome size. Profit factor compares winning and losing totals. Drawdown adds a view of the decline in equity. Read them together, with sample size and costs visible, instead of asking one metric to prove that a strategy has an edge.
Your working checklist
- Use a defined date range and include every closed trade in that range.
- Calculate metrics from net outcomes with one stable risk convention.
- Show trade count alongside each strategy or tag result.
- Check whether a few outliers account for most of the result.
- Treat historical measurements as observations, not promises about future returns.
Work through the guides
Profit Factor vs Expectancy: What Each Metric Tells You
Calculate profit factor and expectancy from the same trade sample, include fees consistently, and identify what both metrics leave out.
From the journalBreakeven Win Rate: How Trading Fees Move the Threshold
Find breakeven win rate from average wins, losses, and costs. Work through 1:2 and 1:3 examples without confusing targets with realized results.
From the journalDrawdown Recovery: Why a 20% Loss Needs a 25% Gain
Calculate drawdown and recovery correctly, separate cash flows from performance, and use your journal to investigate the decline.
From the journalHow to Use Expected Value to Decide Which Trades Are Worth Taking
Learn to calculate trading expected value in R-multiples, include fees, and review your setup data with more discipline.
From the journalThe Only 5 Metrics That Tell You If Your Trading Strategy Actually Has Edge
Use win rate, average win and loss in R, expectancy, and net R to assess a trading strategy without relying on dollar P&L.
From the journalTrading Strategy Breakdown: Find Your Real Edge
Learn how to break down trading results by setup, compare net R and expected value, and review the evidence without relying on pooled win rate.
From the journalTrack R-Multiples Accurately in a Trading Journal
Your spreadsheet says you made 2R on that trade. Your account disagrees.
From the journalR-Multiples vs. Dollar P&L
Learn how R-multiples normalize trading outcomes by initial risk, why dollar P&L can hide size differences, and how to calculate realized net R.
Apply the numbers
Trading Expectancy Calculator
Calculate trading expected value from win rate, average win, average loss, and costs. Measure expectancy in R or money and find the breakeven threshold.
Free toolProfit Factor Calculator
Calculate profit factor from total winning and losing P&L. Understand results above or below one, zero-loss samples, and the effect of trading costs.
Free toolBreakeven Win Rate Calculator
Find the win rate needed to break even from average reward, average loss, and trading costs. Compare risk reward ratios with a free calculator.
Free toolDrawdown Recovery Calculator
Calculate account drawdown and the percentage gain required to recover to a previous equity peak. See why a 20% loss needs a 25% recovery.