Glossary

Win rate

The share of trades that closed in profit.

Win rate on its own can be misleading: a strategy that wins 90% of the time but loses far more on the 10% of trades that go wrong can still lose money overall. It has to be read together with the payoff ratio.

A very high win rate paired with a small payoff is also a known pattern for strategies that hold losing trades open rather than accept a small loss, hoping the market turns before the position is forced to close.