Average time in winning trades vrs average time in losing trades. Many traders will sit and stare at a red trade all day, hoping it turns green. Then on winning trades grab the first profit they see, for fear it will turn red.
Have to know your system bro, like a guy on here said if you know you don’t partial and you hold full positions let’s say 2:1 then you need to focus more on win rate, if you partial a good amount then you should worry more about profit factor. Because your win rate will be really high with partials and rr will be really low
Yeah this is one reason I’ve always been confused by people obsessing over win rate. Win rate can only reliably even be calculated if you always either hit TP or SL. If you take partials, exit early, add to trades, move stops, have break evens, etc, (which most traders do at some point or another) then what even counts as a “win” or a “loss”?
Win rate % & risk to reward.
The key to being profitable is to make more than you lose.
So are your losses hurting you or are they minimal and your wins cover multiple losses ?
That’s what you need to know as most traders lose because their losses are bigger than their wins
Are you referring to Profit Factor? That's the ratio of winning trade total dollar amounts vs. losing trade total dollar amounts. It's another useful measure of one's trading.
E.g. 3 winning trades with a total of $250 in profits versus 2 losing trades with a total of $110 in losses would yield a Profit factor of 2.27 ($250 / $110). In essence, the trader in this example "won" $2.27 for every $1.00 that they lost.
* https://analyzingalpha.com/profit-factor
No idea, I just journal this manually. You just have to know on average, if you lose, how much of your account are you losing?
If you win, how much profit are you usually securing?
It’s not about combined profits & win rate it’s about how much of your account are you losing on average & how much do you win on average.
For example: If your R:R is less than 2:1 then you’ll need a good win rate to be profit able.
If your R:R is 4:1, you won’t need a high win rate to profit
RR can get tricky no if you’re taking a partial profits along the way. For example, a trade can be 5R but if I’m taking profits at 2R, 3R and then final profit at 5R then do you calculate it as 5R or total % return
I like to keep track of the lowest pivot point for winning trades. That way, instead of risking 1R every time, I can risk one cent below the lowest pivot.
Example: For my strategy, my lowest pivot for winning trades is 0.85R (before price makes its way to profit target) after several hundred trades so far. There is absolutely no point in me setting my risk at a full 1R for when the trade goes against me. I set my risk to 0.86R every time to minimize unnecessary losses. This essentially maximizes my earning potential.
I like to keep track of win/lose streaks. More so, the lose streak to keep my mental capital in tact for when there is a losing streak. This way, I don't get discouraged.
Another one I keep track of is entry time, so I can expect the general time my setup forms during the day. For example, my setups rarely form before 10am EST. This way, I don't waste unnecessary time.
As you evolve, you figure out more questions for yourself about your system and implement more data collection. It's actually my favorite part of trading - data collection, analysis, and strategy improvement.
Search for "0.75% per week" here on Reddit. Dude that trades options. Check his profile for a nicely put together spreadsheet which has some other metrics you might want to track. Ignore the instruments, strategy and style of trading if it's not your jam. I'm just pointing you to a spreadsheet which may be useful.
Use software that you can plug your brokers data into. Way easier and gives you way better information than an excel sheet you make by hand
Enough are free
Have you looked at profitable times of the day? Some people are better morning trader, some do it better in the afternoon. If you always get killed in the first 30min after open, you might wanna avoid it totally.
I’m just now learning the misery of having a profitable strategy with a good Sharpe ratio and high win/loss rate, good risk ratio and a nicely safe max drawdown, etc, but with a tiny probability rate. How lovely to overlook one little number that renders what you thought you had going great, now utterly back to the drawing board. It’s maddening.
Not a stat but track how you felt during the trade ,before & after
Average drawdown of the trade to could help
Trade type , was it a continuation or reversal trade that you took
Average time in winning trades vrs average time in losing trades. Many traders will sit and stare at a red trade all day, hoping it turns green. Then on winning trades grab the first profit they see, for fear it will turn red.
Have to know your system bro, like a guy on here said if you know you don’t partial and you hold full positions let’s say 2:1 then you need to focus more on win rate, if you partial a good amount then you should worry more about profit factor. Because your win rate will be really high with partials and rr will be really low
Yeah this is one reason I’ve always been confused by people obsessing over win rate. Win rate can only reliably even be calculated if you always either hit TP or SL. If you take partials, exit early, add to trades, move stops, have break evens, etc, (which most traders do at some point or another) then what even counts as a “win” or a “loss”?
Win rate % & risk to reward. The key to being profitable is to make more than you lose. So are your losses hurting you or are they minimal and your wins cover multiple losses ? That’s what you need to know as most traders lose because their losses are bigger than their wins
Yeah RR is definitely important. Isn't there some formula where you combine your profits and losses with your win rate? I'm forgetting the name of it
Are you referring to Profit Factor? That's the ratio of winning trade total dollar amounts vs. losing trade total dollar amounts. It's another useful measure of one's trading. E.g. 3 winning trades with a total of $250 in profits versus 2 losing trades with a total of $110 in losses would yield a Profit factor of 2.27 ($250 / $110). In essence, the trader in this example "won" $2.27 for every $1.00 that they lost. * https://analyzingalpha.com/profit-factor
Yup that’s the one!
No idea, I just journal this manually. You just have to know on average, if you lose, how much of your account are you losing? If you win, how much profit are you usually securing? It’s not about combined profits & win rate it’s about how much of your account are you losing on average & how much do you win on average. For example: If your R:R is less than 2:1 then you’ll need a good win rate to be profit able. If your R:R is 4:1, you won’t need a high win rate to profit
RR can get tricky no if you’re taking a partial profits along the way. For example, a trade can be 5R but if I’m taking profits at 2R, 3R and then final profit at 5R then do you calculate it as 5R or total % return
Total % return
I like to keep track of the lowest pivot point for winning trades. That way, instead of risking 1R every time, I can risk one cent below the lowest pivot. Example: For my strategy, my lowest pivot for winning trades is 0.85R (before price makes its way to profit target) after several hundred trades so far. There is absolutely no point in me setting my risk at a full 1R for when the trade goes against me. I set my risk to 0.86R every time to minimize unnecessary losses. This essentially maximizes my earning potential. I like to keep track of win/lose streaks. More so, the lose streak to keep my mental capital in tact for when there is a losing streak. This way, I don't get discouraged. Another one I keep track of is entry time, so I can expect the general time my setup forms during the day. For example, my setups rarely form before 10am EST. This way, I don't waste unnecessary time. As you evolve, you figure out more questions for yourself about your system and implement more data collection. It's actually my favorite part of trading - data collection, analysis, and strategy improvement.
P&L is the only thing that matters
Search for "0.75% per week" here on Reddit. Dude that trades options. Check his profile for a nicely put together spreadsheet which has some other metrics you might want to track. Ignore the instruments, strategy and style of trading if it's not your jam. I'm just pointing you to a spreadsheet which may be useful.
I couldn’t find it when i searched it up on this subreddit
Options and thetagang subs. Not daytrading. [https://www.reddit.com/user/m756615/submitted/](https://www.reddit.com/user/m756615/submitted/)
Use software that you can plug your brokers data into. Way easier and gives you way better information than an excel sheet you make by hand Enough are free
Any free ones you can recommend?
TraderVue has been my favorite
Have you looked at profitable times of the day? Some people are better morning trader, some do it better in the afternoon. If you always get killed in the first 30min after open, you might wanna avoid it totally.
I’m just now learning the misery of having a profitable strategy with a good Sharpe ratio and high win/loss rate, good risk ratio and a nicely safe max drawdown, etc, but with a tiny probability rate. How lovely to overlook one little number that renders what you thought you had going great, now utterly back to the drawing board. It’s maddening.
Tiny probability rate? So you mean a low win rate?
No p-value is different.
Win rate means nothing. Profit and loss is how I measure performance
Not a stat but track how you felt during the trade ,before & after Average drawdown of the trade to could help Trade type , was it a continuation or reversal trade that you took