Trade Performance Metrics
What it means
Win rate is the percentage of profitable trades. Profit factor is gross profits divided by gross losses. Average winner and loser sizes reveal whether your edge is real. Expectancy combines win rate and average win versus loss into the amount you can expect per trade.
Why it matters
A high win rate can still lose money if average losses exceed average wins.
Examples
Winning 70% but with large losers can produce negative expectancy.