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.