// Definition
Win rate is the percentage of trades that end in profit.
Explained simply
If 6 out of 10 trades win, the win rate is 60 percent. Win rate alone does not tell you whether a strategy makes money. What matters is win rate combined with the size of wins compared with losses.
A strategy that wins 40 percent of the time with a 1:3 risk-reward can be far more profitable than one that wins 70 percent with tiny wins and big losses.
Tip
Always judge a strategy on win rate and average win versus average loss together, and over many trades.
For education only, not financial advice. Trading is risky and you can lose money.