What Is Win Rate?
Win rate is the percentage of winning trades relative to the total number of trades executed. It is the most popular metric in trading — and also the most misunderstood. A high win rate does not guarantee profitability, and a low win rate does not mean a bad strategy.
How to Calculate Win Rate
Formula: Win Rate = (Number of winning trades ÷ Total trades) × 100
Example: 35 winning trades out of 50 total = 70% win rate.
Why Win Rate Alone Is Misleading
Consider two traders:
- Trader A: 80% win rate, but wins $50 per trade and loses $200. Net result: negative.
- Trader B: 40% win rate, but wins $300 per trade and loses $80. Net result: positive.
Trader B is profitable with less than half the trades correct. What matters is not how often you win, but how much you gain when you win vs. how much you lose when you are wrong.
Win Rate and Risk/Reward: The Right Combination
To be profitable, your win rate must align with your average Risk/Reward. The basic rule: Minimum required win rate = 1 ÷ (1 + RR). With a 1:2 RR, you only need 33% win rate to be profitable. With 1:1 RR, you need more than 50%.
What Win Rate Is Good for Forex?
There is no universal number. Scalpers tend to have a higher win rate (60–80%) with smaller RR. Swing traders often have a lower win rate (35–50%) with larger RR. What matters is the win rate + RR combination resulting in a positive mathematical expectancy.
How to Monitor Your Win Rate Meaningfully
Analyzing the win rate of just 10 trades is statistically irrelevant. You need at least 50 to 100 trades for a reliable sample. ForexTracker automatically calculates your cumulative win rate, by currency pair, by session, and by setup — allowing you to identify where your strategy is most efficient.
Monitor your win rate and all your metrics in one place. Access app.forextracker.com.br.