Percent profitable (Win rate)

The percentage of winning trades generated by a strategy. Calculated by dividing the number of winning trades by the total number of closed trades generated by a strategy. This metric measures the frequency of successful outcomes but does not reflect the magnitude of those successes.

Exclusions: This calculation only considers closed trades. It excludes currently open positions and excludes "even" trades from the numerator, though they remain in the denominator as part of the total trade count.

Strategic value: A high percentage is not a guarantee of profitability. A strategy can have a 90% win rate and still lose money if the few losses are massive. Conversely, many "Trend Following" strategies have a win rate below 40% but are highly profitable because their winners are significantly larger than their losses.

Reliability: This metric should always be analyzed in conjunction with the Profit factor and Average P&L to determine the strategy's overall health.

Calculation Formula

The percentage is derived by dividing the count of winning trades by the total volume of completed trades.