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Backtesting
The average rupees a trade made. Negative expectancy with a pretty equity curve is a lucky streak.
Expectancy = Win rate × Average win − Loss rate × Average loss
With a 40% win rate, an average win of ₹3,000 and an average loss of ₹1,000: 0.4 × 3,000 − 0.6 × 1,000 = ₹600 per trade.
The average rupees a trade made. Negative expectancy with a pretty equity curve is a lucky streak.
Expectancy = Win rate × Average win − Loss rate × Average loss. With a 40% win rate, an average win of ₹3,000 and an average loss of ₹1,000: 0.4 × 3,000 − 0.6 × 1,000 = ₹600 per trade.