PFH Markets is a global trading platform offering access to forex, indices, and commodities

When new traders enter the financial markets, they almost always ask the same initial question: "What is the win rate of this strategy? "It makes intuitive sense. In school, sports, and traditional careers, a higher percentage of success equates to a better performance. But in the landscape of live market execution, obsessing over your win-loss ratio is a trap. It forces you to prioritize emotional comfort over mathematical reality. To achieve true, year-over-year profitability, you have to transition your focus away from how often you win, and instead master the concept of System Expectancy.  What is System Expectancy? In simple terms, expectancy is the average amount of capital your account stands to gain or lose on every single trade you execute, factoring in all your wins and losses over a substantial time horizon. When you treat your trading system like a business, individual trades stop looking like independent bets. Instead, they become data points in an ongoing manufa...