Essential Trading Performance Metrics
Tracking the right metrics is essential for understanding and improving your trading performance. Learn which KPIs matter most and how to interpret them.
Core Performance Metrics
Win Rate
Percentage of winning trades. Important but should be viewed alongside average win/loss size.
Profit Factor
Gross profit divided by gross loss. A profit factor above 1.5 indicates a robust strategy.
Risk-Reward Ratio
Average win size divided by average loss size. Higher ratios provide more room for lower win rates.
Advanced Metrics
- Maximum Drawdown
- Sharpe Ratio
- Average Days/Time in Trade
- MAE (Maximum Adverse Excursion)
- MFE (Maximum Favorable Excursion)
Using Metrics for Improvement
Apply performance metrics to:
- Identify strongest/weakest strategies
- Optimize position sizing
- Improve exit timing
- Reduce drawdowns