DEV Community

GFIL
GFIL

Posted on

Expected Value in Trading: The Math of Long-Term Success

EV = (Win% × AvgWin) - (Loss% × AvgLoss)

Example:
System wins 40% at 1:3 R/R
EV = (0.4 × 3) - (0.6 × 1) = 1.2 - 0.6 = +0.6

Positive EV means you will make money long term.


Free EV & risk calculators: https://blog.quant-view.xyz/tools/?utm_source=devto
TG: https://t.me/GFIL_Trading

Top comments (0)