Win rate alone means nothing

Risk · OnlyTrade trading school

A strategy that wins 70% of the time and loses three times what it makes is a losing strategy; one that wins 35% at 1:3 is a good one. The pair that matters is win rate AND the ratio between the average win and the average loss — together they give expectancy, the money per trade you can expect over many. The app shows R:R on the forecast's level rail for this reason: a target twice as far as the stop lets you be wrong more often than right and still finish ahead.

About this lesson

Written by the OnlyTrade team as a general explanation of a market mechanic. It uses no live market data.

Education, not investment advice. No method or result is guaranteed, and trading can lose money. Read the Risk Disclosure.

See it in the app

More lessons

All lessons and help