Trading statistics
Win Rate
The percentage of closed observations classified as profitable.
What Win Rate Means
Win rate divides profitable closed trades by all closed trades. Break-even trades and partial exits need an explicit classification rule.
Win Rate Formula
Win rate = winning trades ÷ total closed trades × 100%
How to Read the Result
58 profitable trades out of 100 produce a 58% win rate, which alone says nothing about payoff size.
Limitations
- It ignores profit and loss magnitude.
- Open trades and selection rules can bias it.
- A high win rate can have negative expectancy.
Common Questions
What win rate breaks even?
It depends on the average win-to-loss ratio and costs, not on a universal threshold.
Measuring return and risk
- Risk-reward ratioDefinition
- BetaDefinition
- AlphaDefinition
- Sharpe ratio formulaFormula
- Sortino ratio formulaFormula