Analyse Trading
Available on Google Play
Install

Win rate

Win rate is the percentage of winning trades out of the total. It is never enough to judge a strategy without the size of wins and losses.

If you win 60 trades out of 100, your win rate is 60%. It is the figure signal sellers push hardest, because it is flattering and easy to understand.

But an 80% win rate can hide a losing strategy if the losses are five times bigger than the wins. Conversely, many trend followers make money with 35% to 40% winning trades, thanks to wins far larger than their losses.

Always read this number alongside the average win to average loss ratio, expectancy and profit factor, over a large enough sample.

The full lessonWin rate and expectancy: does your strategy really make money?A high win rate guarantees nothing. Calculate the expectancy of your trading strategy: the formula, worked examples, thinking in R and the pitfalls to avoid.← Full glossary