Looking at just Win Rate and Risk Reward Ratio is a **common mistake** retail traders make when evaluating trading performance.

Retail traders often overlooked the more important criteria called **Expectancy**. Please allow me to explain…

In the WhaleTrades’ Performance table below, you’ll see it has a **Positive Expectancy of 64%** after 337 closed trades. This is **statistically significant**.

If you have a** 64% Positive Expectancy** from your trading results, means statistically you can expect to get a **$0.64 profit for every $1 traded over the long term**.

It is critically important you have a positive expectancy in your trading results in order to achieve consistent profits as you continue your trading journey.

Successful professional traders watch their Expectancy like a hawk to evaluate performance. Shouldn’t you do it too?

**Performance Table from WhaleTrades.com**

**The problem with Win Rate**

Is a 80% winning rate good? At first look, it is awesome. However, there is a need to look further into how much would you lose for that 20% losing rate. If every winner is a $0.10 and every loser is a $0.90, you will still end up as a loser. We need to consider Risk Reward Ratio.

**The problem with Risk Reward Ratio**

If reward is higher than risk, will it definitely end up as a winner? Looks like it but not necessarily. We need to consider Win Rate.

**Standalone Calculation Is Skewed and Not Meaningful**

Having a win rate by itself is not enough in your overall portfolio performance evaluation. Having a risk reward ratio by itself is also not meaningful to paint the whole picture.

**How are these results being measured? What is a good way to measure them?**

There is a need to combine both win rate as well as risk-reward ratio to give a fuller and more meaningful picture. Combination of this 2 components provides us with a measured result known as “**Expectancy**“.

Most retail traders may have missed out on tracking and evaluating the Expectancy of their trading results. Let me share with you how it is calculated…