Van Tharp's teaching

Creating an

Investment System

This website is created to register personal learning in creating an investment system that can bear fruits for this QuaSyLaTic.

Oct. 2006

Van Tharp's teaching

Glossary

	Expectancy
		How much you can expect to make ($) on the average over many trades, expressed in how much you can make per dollar risked. Expectancy = (PW * AW) - (PL * AL) Where PW : Probability of a winning trade; AW : Average gain (win) PL : Probability of a losing trade; AL : Average loss or Sum [(PWAW) of trade1 + (PWAW) of trade2 + etc] minus Sum [(PLAL) of trade_a + (PLAL) of trade_b + etc]

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End.

Investment Mindset Coaching,