Win Rate

Risk Management

The percentage of trades that are profitable. While important, win rate alone does not determine profitability -- it must be combined with average win/loss size (expectancy). You can be profitable with a 40% win rate if R:R is favorable.

Related Terms

Expectancy

A measure of the average amount you can expect to win or lose per trade: (Win Rate x Avg Win) - (Loss Rate x Avg Loss).

Risk-Reward Ratio

The ratio of potential loss to potential gain on a trade.

Profit Factor

The ratio of gross profits to gross losses.

Learn More

Risk-Reward Ratios

Level 4: Risk & Money Management · 18 min

Expectancy: Your Edge Quantified

Level 4: Risk & Money Management · 20 min