Win Rate — what it is and how to use it in trading
Definition
Win rate is the share of profitable trades among all of a strategy's closed trades. A value of 60% means 6 out of 10 trades closed in profit.
How it works in the builder
Computed as the number of profitable trades divided by the total number of closed trades over the backtest or live-trading period, regardless of the size of each trade's profit or loss.
Typical use
Read together with the risk/reward ratio, not on its own: a strategy with a 30% win rate but an average win several times its average loss can be more profitable than a 70%-win-rate strategy with symmetrically sized trades.
Common pitfalls
A high win rate is easy to engineer artificially — for example, with a tight take-profit and a wide stop-loss; such a strategy closes in a small profit often, but one rare large loss can wipe out all the accumulated gains.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.