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Expectancy / Profit Factor Calculator 

How to use Expectancy / Profit Factor Calculator: 

  • Enter Percentage of winning (zero to 100%) trades in the input area: The percentage of loss will be calculated automatically 
  • Enter Average Wining trades value: This can be the point value, tick value, or actual dollar value 
  • Enter Average Losing trades value: Use the same unit that was used for Average Wins (point value, tick value, or actual dollar) 

Results & Interpretations: 

- Percent Loss will be calculated automatically by subtracting percent Win from 100

- Expectancy is calculated by the formula:
Expectancy = (Win% x Avg Win) – (Loss% x Avg Loss)

* A positive value (above zero) indicates that the trading system is profitable
* A negative value (below zero) indicates that the trading system is not profitable

- Profit Factor is calculated by the formula:
Profit Factor = (Win% x Avg Win) / (Loss% x Avg Loss)

* A value above 1 indicates that the trading system is profitable
* A value below 1 indicates that the trading system is not profitable