✅ Phase 1 — Lesson 1: Win Rate + Risk/Reward + Expected Value (EV)

1) Win Rate

This is simple:

Win Rate = (Number of winning trades ÷ Total trades) × 100

Example:

If you win 6 trades out of 10 trades → 60% win rate

2) Risk/Reward (R:R)

This means:

How much you risk vs how much you can gain

Example:

You risk $50

You try to make $100

That is: 1 : 2 (risk 1, reward 2)

3) Expected Value (EV)

This is the MOST important thing in trading.

Formula:

EV = (Win% × Avg Win) − (Loss% × Avg Loss)