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