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Win Rate

Win rate is the percentage of trades that end in profit compared to your total number of trades. It helps traders measure how often their strategy is successful.

The formula is simple:

Win Rate = (Winning Trades ÷ Total Trades) × 100

For example, if you take 50 trades and 30 are profitable, your win rate is 60%.

A higher win rate may suggest consistency, but it does not automatically mean a strategy is profitable. What matters is how win rate works together with risk-reward ratio. A trader with a 40% win rate can still be profitable if winning trades are much larger than losing ones.

For example:

Trader A wins 70% of trades but makes small profits and takes large losses.

Trader B wins only 45% of trades but each winning trade makes three times more than each loss.

Trader B may be more profitable.

Traders use win rate to evaluate strategy performance, improve risk management, and measure consistency over time. But it should always be viewed alongside factors like average profit, average loss, and market conditions.

In short, win rate tells you how often you are right — not how profitable you are.

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