Key Metrics Explained

Understanding Your Trading Metrics

TradeLogist calculates various metrics to help you understand your trading performance.

Win Rate

Formula: (Winning Trades / Total Trades) × 100

What it tells you: The percentage of trades that were profitable

Benchmark:

• 40-50%: Common for momentum traders
• 50-60%: Good for most strategies
• 60%+: Excellent, verify your edge

Profit Factor

Formula: Gross Profit / Gross Loss

What it tells you: How much you make for every dollar you lose

Benchmark:

• <1.0: Losing strategy
• 1.0-1.5: Break-even to marginal
• 1.5-2.0: Good
• 2.0+: Excellent

Average Win / Average Loss

What it tells you: Your typical winning vs losing trade size

R-Multiple: Average Win / Average Loss

• R > 1: Winners larger than losers
• R = 2: You make 2x on wins vs losses

Expectancy

Formula: (Win Rate × Avg Win) - (Loss Rate × Avg Loss)

What it tells you: Expected value per trade

Example:

• 50% win rate, $200 avg win, $100 avg loss
• Expectancy = (0.5 × $200) - (0.5 × $100) = $50/trade

Maximum Drawdown

What it tells you: Largest peak-to-trough decline

Why it matters:

• Measures worst-case scenario
• Helps size positions appropriately
• Indicates strategy risk

Sharpe Ratio

Formula: (Return - Risk-Free Rate) / Standard Deviation

What it tells you: Risk-adjusted return

Benchmark:

• <1: Below average
• 1-2: Good
• 2-3: Very good

• 3: Excellent

Trade Duration

What it tells you: How long you hold positions

Useful for:

• Identifying your natural trading style
• Optimizing holding periods
• Tax planning (short vs long-term)