Expectancy vs Risk of Ruin
Quick comparison to help you distinguish these two crypto terms.
Expectancy
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strategy
A statistical measure of the average dollar amount a trader expects to gain or lose per unit of risk on each trade, calculated from win rate and average reward-to-risk ratio combined.
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risk
The statistical probability that a trader's account will decline to a level so low it becomes non-viable for continued trading, calculated from win rate, reward-to-risk ratio, and risk per trade percentage.
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