Is my win rate = Winning trades/Winning + Losing Trades? Or Winning trades/Winning + Losing + break even trades? More than 50% of the trades that I don't win are stopped out at break even.
How do you calculate break even stops into statistics?
- Thread starter iamnewuser911
- Start date
Ok so its high 60%s with break even trades calculated together it's around 50% win rate.
Focus on win expectancy instead of win rate. Every transaction or trade should be counted if you look at expectancy:
[(total profit)/(# of wins) + (total loss)/(# of losses) + (total BE)/(# of BE)]/[total capitals used)/(total # of trades)]
Track this over time, or over any specific time period. if that # is positive, you have a winning method, otherwise go back to the drawing board. You can also compare the outcome to any benchmark to see if you are better or worst than a reference investment instrument. A good place to start is to compare your outcome to holding SP 500 index.
More sophisticated traders also look at risk adjusted returns.
Good luck.
[(total profit)/(# of wins) + (total loss)/(# of losses) + (total BE)/(# of BE)]/[total capitals used)/(total # of trades)]
Track this over time, or over any specific time period. if that # is positive, you have a winning method, otherwise go back to the drawing board. You can also compare the outcome to any benchmark to see if you are better or worst than a reference investment instrument. A good place to start is to compare your outcome to holding SP 500 index.
More sophisticated traders also look at risk adjusted returns.
Good luck.
Which would be more meaningful?
Suppose you made 100 trades and broke even on all of them. Would it be more meaningful for you to classify your win rate as 100%, or 0%.
That said, I would not count break-evens as wins. While break-evens are not losses; they also are not wins.
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No need for large type. I answered the question in your post, not the heading to this thread. Standby for my response to the heading.
I don't.
You need a beer.
W/total == win rate
L/total == lose rate
#/total == scratch rate.
You can segregate your trades any way you want -- how 'bout BIGwin/total == Spank rate....
Then you can work on balancing your Spank rate with your Scratch rate, to max(mentalmasturbation)
W/total == win rate
L/total == lose rate
#/total == scratch rate.
You can segregate your trades any way you want -- how 'bout BIGwin/total == Spank rate....
Then you can work on balancing your Spank rate with your Scratch rate, to max(mentalmasturbation)
Sorry for making you feel very offended.