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Glossary

Win rate

Part of the theme Expectancy and edge.

Definition

Win rate is the percentage of trades that end in a profit.

On its own it says nothing about profitability, because it ignores the size of wins versus losses. A high win rate with a poor payoff can still be a losing system.

Formula / example: 70% wins at a 1:3 payoff gives (0.7x1) - (0.3x3) = -0.2R

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