This is very basic.. but here is my excel spreadsheet http://www.jmhunter.info/ES Log 101011-101311.xlsx I'm having issues making the expectancy formula show a good number.. I followed the two equation around page 202, but that one isn't working quite right.. any input?
http://www.iitm.com/sm-Expectancy.htm That is tharps def of it. I am using it to evaluate my risk, adjust my stops, and understand what I should expect from my system
From that website: "Put another way, expectancy tells you how much you can expect to make on the average, per dollar risked, over a number of trades." Why is this guy using a new term - expectancy - for a number that even a ten-year old knows it is the average of all trades? Can I also hijack the concept of summation of trades and call it, for example, sumtendency? I think this guy presents in a very complicated and incomprehensible way what is clear to every trader who has gone to high school.
As mentioned above it is an average of the total R per trade. Add the R's in D column and divide by th enumber of trades. Just gives average R earned per trade.
I don't think you can add the R's because they are different numbers R1, R2,...etc. Am I the only one who can see this? I also pointed that out here: http://www.elitetrader.com/vb/showthread.php?s=&postid=3330917#post3330917