Glossary
Expectancy
Also written or said as: edge, expected value, ev
What a strategy makes or loses per trade on average, once wins and losses are both counted.
Expectancy is win rate times average win, minus loss rate times average loss. A trader who wins half the time, with wins of +60% and losses of -40%, makes 30 minus 20, or +10% per trade on average before fees. Fees come off every trade, so a strategy is only worth running if the number stays positive after them.
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This guide is for learning. It is not financial advice. Most memecoins go to zero and most people who trade them lose money. Only ever trade what you can afford to lose.