There is One Critical Metric that determines whether or not the system/strategy you’re trading is profitable or unprofitable:
Expectancy tells you what you can expect to make in return for each trade you place in the market.
If your expectancy is negative, it doesn’t matter how many trades you take or even how many wins you record, your overall performance will be negative.
Over 90% of traders are trading with a negative expectancy. They are deceived into thinking that they are going to turn it around or make a run, but the truth is that they are trading a method with a negative expectancy and even if they do go on a lucky run, the end result (long term) will be unprofitable.
The good news is that expectancy can be manipulated and even reversed, you just have to change certain things about the way you trade and, as a result, your expectancy can begin to recover.
That was the good news… Here is the best news:
I am willing to look at your personal strategy/system/history and help you make the necessary changes to reverse your expectancy.
It doesn’t matter if you don’t have a consistent strategy or have not been following a disciplined system for a long period of time; it’s extremely likely that you have certain trends and tendencies in your trading that need to be adjusted.
You’ll be amazed that most traders are not nearly as far off from being profitable like they think; it’s more about the small changes than about the big ones.
In order for this to work, you’ll have to help me help you.
Just follow 2 Simple Steps and we’ll be able to help you increase your personal expectancy.
1. Hook your trading account up to Myfxbook
Myfxbook is an analysis tool that looks at your account and gives performance metrics so that we don’t have to look at every trade you have ever made to learn about what you’re doing, Myfxbook does that for us.
It’s a pretty simple process and if you are not already hooked up to Myfxbook, this is a MUST-DO for all Forex traders.
You can connect your FX account at http://www.myfxbook.com/
If you’re not sure how to set up the account, just check out their help page: http://www.myfxbook.com/help
2. Submit A Comment
In order to analyze your trade history, we’ll need to get some important information from your personal Myfxbook account.
All of these stats are EXTREMELY easy to find once you’re connected, which is why we so highly recommend it.
All you have to do is scroll down a bit after you are connected and you’ll see a section that looks like this:
Here are the stats we need you to list in the comment section (or you can simply post an image exactly like the one I have posted above).
1. Winning Percentage
2. Average Win in Pips AND Dollars
3. Average Loss in Pips AND Dollars
4. Best Trade in Pips AND Dollars
5. Worst Trade in Pips AND Dollars
6. And, of course, Expectancy
Above, I posted an account that has a positive expectancy; here’s an example of a more typical account with a negative expectancy:
Please understand that expectancy is truly what determines profitability for a given trader or a given system.
Some people will tell you that it’s all about PIPS, right?
Many systems actually produce a positive pip count and have a negative expectancy, which means it does not matter how many pips they make, they will still lose money.
Check this out:
Over about 500 trades, the system is actually slightly positive in net pips, yet the system expects to lose over 100 dollars per trade on average!
At Winner’s Edge, we care about profit, not pips. While pips are good and it’s certainly great to hit a 300 pip trade, what really matters is whether or not your account is growing long term.
And guess what determines that.
You guessed it! Expectancy!
That’s why we want to help you have a positive expectancy.
We know that if you are trading with a positive expectancy, your account will grow and compound and you’ll build wealth using the Forex Market.
So, just follow the 2 simple steps listed aboveand we’ll help you get on the track to successfully growing your account.
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