Trading Metrics That Actually Matter
Understand the key metrics that separate profitable traders from the rest
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Average Profit Per Trade
A good average profit per trade is at least 2-3x your total costs (commissions + slippage) per trade. For active traders, $50-$150 per trade after costs indicates a healthy edge.
Learn more PerformanceAverage Winner Size
A good average winner size is at least 1.5× your average loser. Consistently profitable traders typically achieve a 1.5:1 to 2.5:1 winner-to-loser ratio, making the metric meaningful only when.
Learn more PerformanceBreak-Even Win Rate
Your break-even win rate depends on your risk-reward ratio. At 1:1 R:R you need 50%, at 1:2 you need 33.3%, and at 1:3 you need 25%. Profitable traders maintain a win rate above their break-even.
Learn more PerformanceCompound Annual Growth Rate
A good CAGR for active traders is 15-25% annually, outperforming the S&P 500 long-term average of roughly 10%. Elite traders may sustain 30%+ CAGR, but anything above 50% is difficult to maintain.
Learn more PerformanceGross vs Net Profit
A healthy trading strategy keeps net profit above 70% of gross profit. If costs consume more than 30% of gross gains, your strategy may not be viable long-term.
Learn more PerformanceNet Expectancy Per Trade
A net expectancy above 1.5× your average cost per trade is the minimum viable threshold. Below zero means the strategy is losing money regardless of win rate. Track monthly over rolling 3-month.
Learn more PerformanceReturn on Investment
A good trading ROI depends on timeframe. Annualized, 15-30% is strong for active traders. Above 30% is exceptional but hard to sustain, while below 5% underperforms passive index investing.
Learn more PerformanceWin/Loss Ratio
A good win/loss ratio is above 2.0, meaning you have twice as many winning trades as losing ones — but it must be evaluated alongside your payoff ratio to gauge true profitability.
Learn moreAverage Losing Trade
A good average losing trade is smaller than your average winning trade. Most profitable traders keep their average loss below 1R, meaning each loss stays within their predefined risk per trade.
Learn more RiskCalmar Ratio
A good Calmar Ratio is above 3.0, meaning annualized returns are at least three times the maximum drawdown. Most retail traders fall between 0.5 and 1.5, while ratios below 0.5 suggest returns.
Learn more RiskDrawdown Duration
A good maximum drawdown duration is under 30 trading days. Consistently recovering within 10-20 days signals strong risk management and psychological resilience.
Learn more RiskKelly Criterion
Most traders should use fractional Kelly (25-50% of the full Kelly percentage). Full Kelly maximizes long-term growth but causes severe drawdowns, so half-Kelly is the practical standard.
Learn more RiskPortfolio Heat
Keep total portfolio heat below 6-10% of account equity. For a $50,000 account, that means no more than $3,000–$5,000 at risk across all open trades at any one time.
Learn more RiskRisk-Adjusted Return
A good risk-adjusted return means your ratio scores (Sharpe > 1.0, Sortino > 1.5, Calmar > 3.0) consistently show profits that more than compensate for the volatility and drawdowns you endure.
Learn more RiskRisk of Ruin
Risk of ruin should be below 1% to ensure long-term survival.
Learn more RiskRisk Per Trade
A good risk per trade is 1-2% of account equity. Risking more than 2% per trade significantly increases the probability of large drawdowns and account ruin.
Learn more RiskRisk-Reward Ratio
A good risk-reward ratio is 1:2 or higher, meaning your potential profit is at least twice your potential loss on each trade, allowing profitability even with a win rate below 50%.
Learn more RiskUlcer Index
A good Ulcer Index is below 5, indicating shallow, short-lived drawdowns. Values above 10 suggest deep or prolonged equity declines requiring strategy review.
Learn more RiskValue at Risk
A good daily VaR at 95% confidence should be 1-2% of account equity, meaning on 19 out of 20 days your losses should not exceed that threshold.
Learn moreHold Time Ratio (Winners vs Losers)
A healthy hold time ratio is above 2.0 for trend-following strategies and 1.0–1.5 for mean-reversion. Any ratio below 1.0 means you are holding losers longer than winners — the disposition effect.
Learn more ExecutionAverage Win vs Average Loss
Average win vs loss ratio should be tracked alongside win rate for full picture.
Learn more ExecutionRealized vs Planned R:R Ratio
A good realized-to-planned R:R ratio is 0.8 or above, meaning you capture at least 80% of your planned risk-reward on average. Below 0.6 signals serious execution issues.
Learn more ExecutionSetup Accuracy
Setup accuracy measures how often your identified setups play out as expected.
Learn moreTrack Every Metric Automatically
JournalPlus calculates all your trading metrics in real time. Stop guessing and start measuring.
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