Analysis
Win rate
The percentage of trades that close profitably.
Win rate counts how often a strategy is right, and on its own it says almost nothing about profitability. A 40% win rate is normal and healthy for trend-following approaches with large winners.
It becomes meaningful only alongside average win and loss size. Expectancy — (win rate × average win R) − (loss rate × average loss R) — is the number that determines whether the account grows.
Taught in these lessons
- The bid, the ask & the spread — Forex Foundations
- Market orders vs limit orders — Forex Foundations
- Trend and structure — Charts & Execution
- Sessions & liquidity — Charts & Execution
- The mathematics of drawdown — Risk & Position Sizing
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