Win Rate | Chasing Returns Help Center (2024)

Your Win Rate tells you how many of your trades are profitable, however this should never be confused with success as a trader.

Many traders with high win rates are not profitable. Many studies have shown that many of the worlds most successful traders have win rates of between 40% and 50%.

Win rates must always be reviewed at the same time as the risk reward (the SIZE of winners compared to the size of losing trades).

Only 2% of our studied traders are successful when their win rate is less than 40%.

Win Rate | Chasing Returns Help Center (1)

When the number of winning trades is substantially less than the number of losing trades, it makes it much harder to break even, as each winning trade has to be a lot larger than your average losing trade.

Additionally, the lower your win rate is, the more likely you will have losing streaks which require strong psychological strength to ensure you stay disciplined.

On the opposite end of the scale, if your win rate is higher than 70% but you are not a profitable trader, then it’s likely you are attempting a “scalping” style of trading where you are taking a lot of small winners which are offset by much larger losing trades.

Remember increasing win rate usually causes a decrease in Risk Reward. Increasing Risk Reward usually causes a decrease in the Win Rate.

Win Rate | Chasing Returns Help Center (2024)

FAQs

What is the average win rate of professional traders? ›

Your Win Rate tells you how many of your trades are profitable, however this should never be confused with success as a trader. Many traders with high win rates are not profitable. Many studies have shown that many of the worlds most successful traders have win rates of between 40% and 50%.

What is a good sales win rate? ›

Defining a good win rate depends on your company, niche market, and product. However, a rate of over 60% is considered a strong indicator that you have efficient and effective sales strategies. Some industries might have lower success rate expectations because of the size and complexity of the target market.

What is a good win-loss ratio? ›

The general lessons on win-loss ratios are: A 40% win-loss ratio is a good performance. A higher win-loss ratio is achievable with target customers, providing you have established a good relationship. Spend a small amount of time pre-qualifying bids to avoid chasing “hopeless” bids.

How to calculate the win rate? ›

Win rate is calculated as the percentage of total sales opportunities your team successfully turns into paying customers or clients. For example, if your team had 10 total opportunities and won 3 opportunities, the Win Rate is 30% (3 / 10 = 30%).

Is a 70% win rate good in trading? ›

Simple Forex Trading Strategy with a 70%+ Win Rate

With a high win rate of over 70%, this strategy is perfect for traders who want to make a profit in a short time frame.

Is 90% win rate possible in trading? ›

Any system with a 5 pip profit target and a 500 pip stoploss will have a very high (probably 90%+) win rate. But then one loss will ambush you. In other words, you need to consider the RR (return to risk ratio) of each trade, as well as the win rate.

What is a 70% win rate? ›

Calculating your trading win rate isn't algebra. If you've had 70 profitable trades out of 100, your win rate is 70%. However, if those 30 losing trades wipe out the profit from your 70 winning trades, your net profitability isn't impressive.

Is a 20% sell-through rate good? ›

For example, in the retail industry, a sell-through rate of 10% is considered good, while in the food industry, a sell-through rate of 20% is considered good. In ecommerce, a sell-through rate of 5% is considered average, while in the automotive industry, a sell-through rate of 2% is considered average.

What is the win rate KPI for sales? ›

Calculating Win Rate is straightforward yet critical in measuring sales success. To calculate it, divide the number of deals won by the total number of opportunities, then multiply by 100 to get the win percentage. This calculation is a reflection of the effectiveness of the entire sales process.

What is the highest win rate trading strategy? ›

Triple RSI trading strategy backtest

The 83 trades since 1993 are few, but the average gain is a solid 1.4% per trade. The win rate is 91%, and the profit factor is 5. It is a trading strategy with a high win rate.

What is the difference between win rate and win ratio? ›

A sales win rate is the percentage of closed-won deals against the number of deals lost. In contrast, a sales close rate, also known as the win ratio, is the percentage of closed-won deals against the total number of sales opportunities closed (won or lost).

What is a normal win rate? ›

So, what is a good win rate? On average, a win rate between 20% and 50% is often considered solid. This means that for every 100 opportunities or leads your team engages with, they successfully close between 20 and 50 of them.

What is an example of a win rate? ›

Win rate by count is the ratio of deals won to the number of total closed opportunities. Thus, win rate by count answers the question, “how often do I win?” For instance, if you had 8 closed deals in the past month and only 2 of those were wins then your win rate by count is 25% (2/8=0.25).

What is the win rate percentage? ›

In sports, a winning percentage is the fraction of games or matches a team or individual has won. The statistic is commonly used in standings or rankings to compare teams or individuals. It is defined as wins divided by the total number of matches played (i.e. wins plus draws plus losses). A draw counts as a 1⁄2 win.

What is the average trade success rate? ›

According to a study by the University of California , Berkeley , only about 10 % of traders are able to consistently make a profit and succeed as full - time traders . This means that the vast majority of traders , 90 % , either break even or lose money in the long run .

What is the success rate of a professional day trader? ›

Estimates vary, but it's commonly accepted that only around 10% to 15% of day traders are successful over time.78 This low success rate is attributed to the high risks, the need for substantial skill and experience, and the intense competition in the financial markets.

Is 50% win rate in trading is good? ›

Consider the risk-reward ratio: A trader with a 50% win rate could be more profitable than another with an 80% win rate if the former's risk-reward ratio is considerably better.

Is a 40% win rate good in trading? ›

If a trader is managing risk well and limiting losses on losing trades, a 40% win rate can still lead to profitability. Consistently controlling the size of losing trades is essential for long-term success. Trading Style: Different trading styles may have varying win rates.

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