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Risk Management

Win Rate

Definition

Win rate is the percentage of trades that result in a profit out of the total number of trades taken. A 60% win rate means 6 out of every 10 trades are winners. Win rate alone does not determine profitability, as it must be combined with the risk-reward ratio. A strategy with a 40% win rate can be highly profitable if the average win is much larger than the average loss.

This entry is pending full expansion in Tradopedia.