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.

math cheat sheet
[Free Download] The Ultimate Trading Math Cheat Sheet

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.