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)
How to use Expectancy / Profit Factor Calculator:
– 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
