Expected Payoff (Expectancy)

Expected Payoff - The average profit (or loss) per trade, statistically. In MT5 this is called “Expected Payoff” and equals total net profit divided by total trades. It is also known as expectancy. It can be computed as (Win%×Avg Win) – (Loss%×Avg Loss). A positive expectancy means the strategy should make money on average per trade. Traders use expectancy to gauge if the strategy has a positive edge (e.g. an expectancy of $5 means an average $5 gain per trade).