What is the calculation for the Expert Advisor performance expectancy?

The calculation for expert advisor expectancy is as follows. At the same time, refer to following schedule to see how mock EA is evaluated based on their expectancy rate.
(Accuracy  x Average win) / ((1- Accuracy) x Average loss)

Example 2: The Performance Expectancy

	Winning Trades	Losing Trades	Accuracy	Average Win	Average Loss	Expectancy
EA 1	230	195	54.12%	3.1	2.9	1.26
EA 2	172	280	38.05%	4.4	2.4	1.13
EA 3	395	120	76.70%	1.5	5.3	0.93

Just like in Example 1 : The Drawdown & Profitability Factor, the final sum , which in this case is ‘Expectancy’, shows that anything above 1 is good. In this sense, it reflects net positive return on the account over the measured period. In other words, expectancy can be considered as average amount gained per trade. The more trade data included in the analysis the greater the variance.
Although EA performance can be judge using the expectancy rate, you have to remember it only reflects the overall view per trade. It does not reflect the actual performance of each trade. For instance, a scalping EA will probably have low expectancy. In this case, let us consider an expectancy of 1.15. Even though the number is low number, it should generate a large amount of trades in a period. More trade usually creates a sizable gain.
Now, if you compare this to a significant EA with an expectancy of 5.75, which only generates a few trades during the same period, you would probably reject the scalping EA. In this case, you had probably missed a potentially better EA, if you ignore the nature of the EA and its total profit. Therefore, if have a need to compare, do not compare similar EA. The one that you screened out would probably better from the one that you are left with to do further comparison.

What do we have learn so far?

 You started with understanding that you need to learn how to read trading statistic.
With that, you moved to learning how to measure your profitability. There are two major percentages or rate that you need to look at; the drawdown percentage and the expectancy rate. You discern the results on max, average and the recovery drawdown of the EA. Then you moved on to learn how the MT4 EA accuracy and win/loss ratio. Using this data, you discern performance expectancy MT4 EA.
By combining both quantifiable data, you have an idea on which MT4 EA to choose. Probably, by now you will have a list.
However, there is another part of choosing the right MT4 EA that we have not explore yet. This is the intangible or qualitative factor.

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