Trading Statistics and Performance Metrics
Use clear definitions before comparing trading statistics. The same metric can mean different things when fees, units or sampling intervals change.
Connect practice with review
The preview shows how a trading record can be presented alongside performance metrics. All displayed numbers are illustrative. Open the application to check the tools and data currently available.
Open the TGSFX application →A reference for core trading statistics
| Metric | Definition | What to check |
|---|---|---|
| Win rate | Winning trades divided by all included trades. | How flat trades are counted. |
| Expectancy | Average net outcome per trade. | Currency or R units, and costs. |
| Profit factor | Gross positive outcomes divided by absolute gross negative outcomes. | Undefined when there are no losses. |
| R multiple | Net outcome divided by the initial risk amount. | Keep initial risk fixed for the calculation. |
| Maximum drawdown | Largest peak-to-trough decline in the chosen equity series. | Equity versus balance; observation frequency. |
These definitions describe a sample. They do not supply a reliable prediction by themselves. See the worked expectancy calculation for an example that keeps all outcomes in the same units.
Use compatible observations
A daily return series and a per-trade outcome series measure different things. Annualised risk-adjusted ratios also depend on sampling frequency, assumptions and the return convention. Label the period and definition rather than comparing values that happen to share a name.
For trade-level review, retain net outcome, initial risk and timestamp. For account-level review, retain the equity sequence and cash-flow treatment. Deposits or withdrawals can otherwise look like trading gains or losses.
Calculate and interpret
Use the expectancy and drawdown calculators for simple arithmetic examples. Then inspect the actual trade sequence in analytics. Positive average outcomes can coexist with a substantial drawdown, and a short favourable sample can omit difficult conditions. The drawdown recovery guide explains why the percentage needed to recover differs from the percentage lost.
Questions about this topic
Is profit factor defined with zero losing outcomes?
No finite ratio can be calculated when the denominator is zero. Show it as undefined rather than inventing a large number.
What is one R?
One R is the initial risk amount used to normalise a trade. An outcome of 0.5R is half that amount; an outcome of -1R loses that amount.