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Trading glossary

Win rate,
and the one that breaks even.

The share of your trades that made money. On its own it says little: what matters is how it compares with the win rate you need to break even.

The formula

Win rate = winning trades ÷ all trades. Break-even = average loss ÷ (average win + average loss)

Win rateThe share of your trades that made money.
Break-even win rateThe win rate at which you make nothing. Above it, your wins pay for your losses.

A 40% win rate can make money and a 70% one can lose it. The break-even win rate tells you which: it’s your average loss divided by your average win plus your average loss. Win more often than that and your wins pay for your losses.

Example

45 wins and 55 losses is a 45% win rate. Winners average $200 and losers $100, so you break even at $100 ÷ ($200 + $100) = 33%. At 45%, you’re ahead.

Working it out…

Runs in your browser: nothing you type is sent anywhere. Arithmetic, not advice.

In Journalcade

Win rate, and the one you need.

Tap the “i” next to your win rate and Journalcade works out your break-even win rate from your own average win and loss.

  • Your win rate on the dashboard
  • Break-even, worked with your trades
  • Tap the “i” on any number
Start free →
Journalcade · Reports
Reports in Journalcade on sample trades
Questions

Quick answers.

What is a good win rate?+
One above your break-even win rate. A trader with big winners needs fewer of them than one who takes small profits.
Why does my win rate look good while I lose money?+
Usually because the losers are much bigger than the winners. Compare your average win and loss, and look for losers held too long.
Do break-even trades count?+
Win rate is winning trades out of all trades, so a trade that made exactly nothing counts as a trade, not a win.
How do I raise my win rate?+
Taking only your best setups usually helps more than anything else. Check which setups win most in your own trades first.
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