Hello everyone! I recently noticed there isn’t really any program or website that helps calculate your monthly expectancy. If you are unaware what expectancy is, it basically tells you what you can expect to make (win or lose) for every dollar risked. It’s a great way to see how much money you are expected to make month to month using whatever strategy you happen to be using. This way you aren’t unsure about how much you earn or can earn along with knowing what your strategy is capable of.
Seeing as its a little cumberson to calculate this whole thing yourself, I created a calculator for you to use to make the process much easier!
https://dashhup.wixsite.com/forexexpectancy
FAQ:
Q: Is this calculator accurate?
A: Yep! I’m 150% confident that the calculator is perfectly accurate. Seeing as accuracy is the most important part of these calculations, I checked, double checked and triple checked the math to make sure it all checked out. But just in case you’d like check out how the calculator was made and with what sources/formulas, check out this awesome post by JasperForex: https://www.tradingview.com/chart/EURUSD/Ytcmi3ov-Expectancy-How-Profitable-is-your-Trading-Strategy/
Q: I use the expectancy calculator by tradeciety.com, whats wrong with that one?
A: Nothing! However, in my own opinion, it doesn’t really explain all that well how the calculator works and doesn’t really answer any questions. The expectancy number it calculates is useful, but it might as well just do the calculations for your monthly or yearly profit as well since that’s about the only thing expectancy numbers are used for. So I made one that is a little easier to understand and does it all for you!
Q: Why should I care about my expectancy number?
A: Well, at the end of the day the whole point of the number is to tell you your expected profit for the month or year. (or day or week etc). So you can compare two strategies this way and easily see which one is more profitable. And if one is more profitable than the other…well…
You’d probably use it over the less profitable one.
It also helps show what you can change about the strategy and see if it gets more or less profitable. Obviously, you’ll have to backtest your strategy each time, but at least you can easily plop the info you get from the backtests into the calculator and see if you improved your strat!
Let me know if you’d like anything added or if there is an issue. Happy Trading.