Risk Management

Win rate & expectancy

Win rate is not enough

Expectancy = (win rate × average win) − (loss rate × average loss). A 35% win rate can be profitable with 1:3 trades; a 70% win rate can lose money with tiny wins and big losses.

Test yourself

Which strategy can be profitable?

40% win rate with 1:2 risk:reward0.4 × 2 − 0.6 × 1 = +0.2R per trade.

Learn this by playing

Short interactive lessons and quizzes on real crypto and forex charts. Free to start, no real money involved.

Play Candlr free

More in Risk Management

Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.