Win rate is simply the number of winning trades divided by total trades, expressed as a percentage. It's frequently overrated in isolation — a 30% win rate can be highly profitable with a large risk/reward ratio, while an 80% win rate can lose money if the average loss dwarfs the average win. Win rate only becomes meaningful for judging a strategy when it's paired with risk/reward to calculate expected value.
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TRADING GLOSSARY
Win Rate
The percentage of trades that close as winners out of all trades taken.