Forex glossary
Win Rate
Win rate is the share of closed trades with positive results in a stated sample. Specify treatment of costs and break-even trades. It does not show average gain or loss size and cannot establish profitability alone; sample size and representativeness also matter.
Illustrative example
How does it work in practice?
In a hypothetical sample, five closed trades have net results of +8, +6, −5, −4 and 0 PLN. Keeping the zero-result trade in the denominator gives a win rate of 2/5 = 40%; that percentage alone does not tell you the sample's net profit.
A case to work through
A cost changes the result category
Model: gross results +2, +8, −3 and 0 USD; each trade costs another 3 USD and all remain in the denominator.
- Net results are −1, +5, −6 and −3 USD.
- Only one of four is positive, so net win rate is 25%.
What follows? Define the convention before comparing reports.
Example boundary: Four trades illustrate arithmetic rather than a lasting edge.
A useful distinction
Win Rate / Expectancy
Expectancy uses gain and loss size; win rate measures only the sample’s share of positive results.
Check your understanding
Classify trades using net results.
Show the answer and explanation
40%
Two positive trades out of five: 2/5.
Net results and risk measures
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Related terms
Sources and documentation
- MetaTrader 5: Trading Report
The report distinguishes results before and after swaps and commissions and reports drawdown of the selected balance or equity measure from a local peak.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.