The basic formula
Win rate is (winning trades ÷ total trades) × 100. Win 12 out of 20 trades and your win rate is 60%. The math itself is simple.
Trap 1 — too small a sample
A win rate calculated from 5 or 10 trades is statistically almost meaningless. Just as flipping heads 7 out of 10 times isn’t unusual, a handful of trades can’t reveal your true win rate. You need at least 30–50 trades before the number is worth trusting.
Trap 2 — ignoring risk-reward
Judging a strategy by win rate alone is dangerous. A 70% win rate with a 1:0.3 risk-reward ratio means a single loss can wipe out the gains from three wins. Win rate must always be read alongside risk-reward.
Tracking it accurately
Log every single trade — including small ones — in your journal, and let the app calculate win rate automatically. Manual calculation tends to accidentally skip unfavorable trades, so an automated tool is more accurate.
← Back to Guide Index