What is win rate in trading?
In one line: Win rate is the share of your trades that end in a win, shown as a percentage. 8 wins out of 20 trades is a 40% win rate.
A simple example
You log 20 trades. 8 hit the target and 12 hit the stop. Your win rate is 8 ÷ 20 = 40%.
That sounds low. But it can't tell you anything on its own — because it ignores how much each win and loss was.
Two traders, two stories
All numbers are in units of risk, where 1 unit = what you lose when the stop is hit.
| Trader A | Trader B | |
|---|---|---|
| Win rate | 40% | 70% |
| Average win | +2 units | +1 unit |
| Average loss | −1 unit | −3 units |
| Per 10 trades | 4×2 − 6×1 = +2 | 7×1 − 3×3 = −2 |
Trader B wins far more often and still ends lower. That's a math example, not a promise. Try your own numbers in the expectancy calculator.
Why it matters
Win rate and risk-reward ratio work as a pair. Bigger wins mean you can lose more often and still be fine on paper. Smaller wins mean you have to be right much more often. Neither number tells the story alone.
Our guide to the risk-reward ratio shows how to plan both before a trade.
A common mistake
Chasing a high win rate. The easiest way to win more often is to take tiny profits early and let losers run. The win rate goes up — and so does the size of each loss. That's how Trader B is built.
Small samples also fool people. Ten trades can show a 70% win rate by luck. Judge a set of rules on 100 logged trades or more, from backtesting or a real trading journal.
Questions
What is a good win rate for trading?
There isn't one number. A win rate only means something next to the average win and loss. Many traders with 2-to-1 targets win less than half their trades.
How do I calculate my win rate?
Wins divided by total trades, times 100. Count every trade you took — not just the ones you remember.
Should I count breakeven trades?
Decide once and stay consistent. Many traders log them separately so they don't blur the win rate.
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