PCP and PCR traffic lights
PCP stands for = Profitability Check Planned
PCR stands for = Profitability Check Realized
The PCP column analyzes the reward:risk ratio of the individual trade at the time of the trade entry and compares it to the current winrate.
When the reward:risk ratio is too low for the winrate to provide a positive expectancy, then it will show a red light. When the reward:risk ratio is high enough, it will provide a green light.
For example, for a winrate of 50%. the required RRR must be higher than 1:1 to provide a positive expectancy.
The PCR column analyzes the reward:risk ratio of the individual trade when you exit the trade and compares it to the current winrate.
A green PCR may turn red when the loss has been cut too late or the winning trade too soon.
Therefore, the PCR may provide information about trade management instantly.
Important: The PCR and PCP traffic lights will start working after you have entered 30 trades in Edgewonk.
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