What Is Win Rate?
Win rate is the percentage of trades that end in profit out of total trades taken. A trader who wins 60 out of 100 trades has a 60% win rate. It's one of the most intuitive performance metrics, but misleading in isolation — a 90% win rate means nothing if the 10% of losers are each 10x larger than the winners.
How Win Rate Works
Win rate combines with average risk-reward ratio to determine a strategy's mathematical expectancy:
- 60% win rate with 1:1 R:R — Profitable (expected value = +20% per 100 trades)
- 40% win rate with 1:3 R:R — Profitable (expected value = +80% per 100 trades)
- 80% win rate with 1:0.2 R:R — Unprofitable (expected value = -4% per 100 trades)
Why It Matters for Traders
Win rate is the metric most traders obsess over but understand least. A high win rate is psychologically satisfying but doesn't guarantee profitability. A low win rate with excellent R:R can be highly profitable but psychologically difficult. The best traders optimize for expectancy (win rate × average win - loss rate × average loss), not win rate alone. Tracking win rate by setup type in a trading journal reveals which patterns genuinely have edge.