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Trading

How to Know If Your Trading Strategy Actually Works

September 28, 2026January 27, 2022 by Katie
A grid of expectancy per trade in R. At 1R a 40% win rate gives minus 0.20R and 50% gives zero. At 2R a 40% win rate gives plus 0.20R and 60% gives plus 0.80R. At 3R even 40% gives plus 0.60R.

Five numbers decide it, and your account balance is not one of them. How to compute expectancy, how many trades you need, and how to tell a broken strategy from a normal drawdown.

Categories Risk management, Trading

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