Friday, August 17, 2007

Expectancy Formula per Tharp

Tharp: Expectancy
Average per trade divided by min loss (see below)

Positive Expectancy =
Gross Profits / Total trades*
Negative Expectancy =
Gross Losses / Total trades

*winners and losers

Expectancy = Positive Expectancy - Negative Expectancy

No comments:

Post a Comment