Smart position sizing & risk management

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Risk Management

Win Rate

The percentage of trades that are profitable. A 45% win rate means 45 out of 100 trades are winners.

What is Win Rate?

Win rate (also called batting average) is the percentage of your trades that end in profit. It's one of the most tracked: and most misunderstood: trading metrics.

The truth about win rate

  • Win rate alone means nothing: you can have a 90% win rate and still lose money if your losers are much larger than your winners
  • 40-50% is normal: most successful day traders win fewer than half their trades
  • What matters is win rate × average win vs. loss rate × average loss

Win rate by strategy

  • Scalping: typically 60-70% win rate with small R-multiples
  • Day trading: typically 40-55% with 2-3R targets
  • Swing trading: typically 35-50% with 3-5R targets