GLOSSARY · RISK & PERFORMANCE
What is Win Rate?
Win rate is the percentage of trades that reach their target instead of their stop.
Win rate alone doesn't tell you if a strategy is profitable — it has to be read together with risk-reward. A 40% win rate can be very profitable with 2R targets; a 70% win rate can lose money with tiny targets and big stops.
Always check the sample size. A win rate from 10 trades means very little; from hundreds of trades it means much more.
EXAMPLE
With a 1.5R target, the break-even win rate is 40%. Anything consistently above that is profitable before costs.
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