TRADING PERFORMANCE GLOSSARY
Trading win rate
Win rate measures how frequently trades finish profitably in a defined sample. It says nothing by itself about the size of wins, losses, fees, or risk taken.
Updated August 31, 2026 · Educational information onlyTHE FORMULA
Win rate = winning trades ÷ total closed trades × 100
Use consistent units and state how breakevens, fees, and incomplete trades are treated.
WORKED EXAMPLE
See the calculation.
With 24 winners, 14 losers, and 2 breakevens, overall win rate is 24 ÷ 40 = 60%. If breakevens are excluded, decisive win rate is 24 ÷ 38 = 63.16%.
HOW TO INTERPRET IT
Ask what the number leaves out.
- State whether breakevens remain in the denominator.
- Pair win rate with average win, average loss, expectancy, and costs.
- Compare consistent samples and avoid treating an arbitrary target as universal.
COMMON MISTAKES
Keep comparisons honest.
- Counting open trades as outcomes.
- Changing breakeven treatment between periods.
- Optimizing win frequency while ignoring loss magnitude.