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164: Expectancy vs. Win Rate: What Really Matters
Manage episode 509140443 series 3383463
In this episode of the Stock Market Options Trading Podcast, Eric dives into the concept of expectancyâa key metric that blends win rate, average win size, and average loss size into one number that helps traders understand whether a strategy has a real edge over the long run.
We break down why a high win rate alone doesnât guarantee profits (think 98% win rate adsâŚ), and how expectancy provides better context by showing how much you can expect to make or lose per trade on average. Eric also shares updates inside Alpha Crunching: the Trade Ideas tab now includes expectancy alongside win rate, giving subscribers deeper insight when sorting potential setups for the week.
Youâll also hear about future enhancementsâlike adding average win and loss valuesâso traders can better gauge risk-reward and decide which setups fit their personal style.
đ Try Alpha Crunching for yourself and get 50% off your first month here: https://alphacrunching.com
167 episodes
Manage episode 509140443 series 3383463
In this episode of the Stock Market Options Trading Podcast, Eric dives into the concept of expectancyâa key metric that blends win rate, average win size, and average loss size into one number that helps traders understand whether a strategy has a real edge over the long run.
We break down why a high win rate alone doesnât guarantee profits (think 98% win rate adsâŚ), and how expectancy provides better context by showing how much you can expect to make or lose per trade on average. Eric also shares updates inside Alpha Crunching: the Trade Ideas tab now includes expectancy alongside win rate, giving subscribers deeper insight when sorting potential setups for the week.
Youâll also hear about future enhancementsâlike adding average win and loss valuesâso traders can better gauge risk-reward and decide which setups fit their personal style.
đ Try Alpha Crunching for yourself and get 50% off your first month here: https://alphacrunching.com
167 episodes
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