How to Calculate Your Trading Win Rate (and Why It's Not Enough)
The Win Rate Formula
Win Rate = (Winning Trades / Total Trades) × 100
Simple, right? If you took 100 trades and 55 were profitable, your win rate is 55%. But this number alone tells you almost nothing about your profitability.
Why Win Rate Is Misleading
Consider two traders:
Trader A's expectancy: (0.70 × $100) - (0.30 × $300) = $70 - $90 = -$20 per trade (losing money!)
Trader B's expectancy: (0.40 × $500) - (0.60 × $150) = $200 - $90 = +$110 per trade (profitable!)
The trader with the LOWER win rate is making more money.
Metrics That Complete the Picture
1. Profit Factor = Total Profits / Total Losses (above 1.5 is good) 2. Expectancy = (Win% × Avg Win) - (Loss% × Avg Loss) (must be positive) 3. R-Multiples = Trade P&L / Initial Risk (normalizes across different position sizes) 4. Payoff Ratio = Average Win / Average Loss (higher is better)
How TradeMind Helps
TradeMind calculates all of these metrics automatically from your trade data. No formulas, no spreadsheets — just import your trades and see the full picture instantly.