Today’s topic is about the value of the 2% rule in Forex Risk Management. In this video I show you how one simple change can take you from being a losing Forex Trader to a Profitable one almost overnight (if you aren’t already using the 2% rule).
Expectancy is the formula used In Naked Price Action Forex Trading wherein we use it to help to determine how reliable our system is.
In order to calculate the Expectancy you’ll need to go back in time and measure ALL your trades that were winners versus ALL your trades that were losers. If you like you can do this for each specific system or even your whole entire as a whole. It’s up to you. By doing utilizing YOUR historical data you will then be in a position to determine how profitable your winning trades were versus
how much your losing trades lost.