Category Archives: Trading Metrics

Win rate vs Expectancy: Which is better?

Trading Expectancy vs Trading Win Rate

Beware of traders who say their win rate is x or y% because win rate doesn’t give a complete picture of someone’s trading performance…at all. Win rate is simply the percentage of trades that net gains. On the other hand, expectancy takes into account the average size of gains and losses giving you a better picture of a trader’s performance. In this post, we’ll explain both metrics and why they matter in understanding how good a trading strategy really is.

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How to manually compute the P&L of your stocks, options and futures trades

How to calculate the pnl of your stocks, options and futures trades

At Trademetria, we process millions of trades a month without a glitch, and believe it or not, when users compare our results to their broker statements, they find some scary broker miscalculations ranging from rounding errors to missing fills leading to a wrong pnl. After seeing data from 150+ brokers, we can safely say we’ve seen it all.

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How to compute your portfolio’s annualized rate of return

Rate of Return

If you’re an investor or trader, chances are that you want to see great returns on your investments. One of the most common ways to measure your returns is through the annualized rate of return (ARR) metric. Simply put, this is the percentage returns of your portfolio over a period of time.

In this blog post, we’ll show you how to calculate your own percentage return using two different methods.

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