Key metrics to track
. Key metrics to track: Explain win rate, average R, expectancy, and profit factor.
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Tracking key trading metrics is essential for evaluating your performance, especially when managing strict daily loss limits and consistency rules on a funded account.
Win Rate: The percentage of winning trades out of total trades taken.
Average R (Reward-to-Risk): The average size of your winning trades relative to your losing trades.
Expectancy: The average amount you can expect to make per dollar risked, calculated as `(Win Rate × Average Win) - (Loss Rate × Average Loss)`.
Profit Factor: Gross profits divided by gross losses. A ratio above 1.0 means your strategy is profitable.
In prop firm trading, keeping an eye on these metrics helps ensure your edge remains stable over time without breaching risk parameters. How do you track these numbers in your routine?
