Understanding the mathematical principles of profitable trading can help a trader understand how to create a positive expectancy trading system with an edge. The understanding of the underlying math can change how you look at your own trading and see what really matters: risk per trade, win rate, losing streaks, drawdowns, positive expectancy, and growth rate.
The math that a trader needs to understand is not complex and can be summarized into a few of the most important core dynamics. Below is the math a trader needs on one cheat sheet. Use these formulas to unlock your own profitable strategy and you can also download this document in a PDF below to keep it for future reference. This math cheat sheet is courtesy of EdgeWonk.com.