164: Expectancy vs. Win Rate: What Really Matters

164: Expectancy vs. Win Rate: What Really Matters

In this episode of the Stock Market Options Trading Podcast, Eric dives into the concept of expectancy—a key metric that blends win rate, average win size, and average loss size into one number that helps traders understand whether a strategy has a real edge over the long run.

We break down why a high win rate alone doesn’t guarantee profits (think 98% win rate ads…), and how expectancy provides better context by showing how much you can expect to make or lose per trade on average. Eric also shares updates inside Alpha Crunching: the Trade Ideas tab now includes expectancy alongside win rate, giving subscribers deeper insight when sorting potential setups for the week.

You’ll also hear about future enhancements—like adding average win and loss values—so traders can better gauge risk-reward and decide which setups fit their personal style.

👉 Try Alpha Crunching for yourself and get 50% off your first month here: https://alphacrunching.com

Jaksot(177)

El Salvador Trader Discuss Bitcoin As A Currency

El Salvador Trader Discuss Bitcoin As A Currency

In September of 2021, the country of El Salvador made Bitcoin legal tender. Shortly after, the price of Bitcoin dropped about 20%. In this episode, I talk to a trading buddy who lives in El Salvador t...

16 Syys 202132min

Trader Chat: Regular Income vs. Trading Income

Trader Chat: Regular Income vs. Trading Income

In this episode, I'm sharing a casual conversation with one of my Patreon members around trading for income and hedging with options.It was a great conversation and I regret having to cut it so short....

7 Syys 202120min

Trader Chat: Autotrading, Credit Spread Risk Reward, Hedging, Retirement

Trader Chat: Autotrading, Credit Spread Risk Reward, Hedging, Retirement

In this episode, I'm sharing a casual conversation with one of my Patreon members around various subjects including autotrading services, the risk reward of credit spreads, hedging, and retirement. It...

31 Elo 202119min

Tips For Learning A New Trading Strategy

Tips For Learning A New Trading Strategy

Learning a new trading strategy can be fun and exciting but I often see traders struggle with new strategies because of conflicting ideas from previous things they've learned. Therefore I put together...

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Conservative Monthly Options Strategy With Hedging

Conservative Monthly Options Strategy With Hedging

Today's episode is the audio version of a conservative monthly options trading strategy recently posted at https://www.patreon.com/VerticalSpreadOptionsTrading for supporters of the podcast and YouTub...

13 Heinä 202123min

Are Option Probabilities B.S.?

Are Option Probabilities B.S.?

One of the attractions of trading options is the idea that you can create trades with varying degrees of probabilities of profit. In this episode, I put the option probabilities that the trading platf...

22 Kesä 202113min

Teen Investing with Jack Rosenthal

Teen Investing with Jack Rosenthal

Want to discuss this episode with us?Come join us over on the podcast trading community at https://www.stockmarketoptionstrading.net where you can ask questions and discuss this with other traders.In ...

8 Kesä 202121min

0% Capital Gains with Act 60 Tax Incentives

0% Capital Gains with Act 60 Tax Incentives

Want to discuss this episode with us?Come join us over on the podcast trading community at https://www.stockmarketoptionstrading.net where you can ask questions and discuss this with other traders. In...

1 Kesä 202126min

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