Win Rate Calculator
Win rate calculator in Forex trading is a calculator that gives you the winning percentage output of your trades. That means you get a value that tells you how much of winning trades you had compared to all trades you have open.
The calculator always calculates outcome for the winning trades and that is why it is called win rate.
The win rate calculator in Forex is a great tool that will help you define if your trading results are good enough. Because if the win rate is low it will mean a possible losing strategy.
If you have a good win rate that could mean you are profitable in general. What is a good win rate and which win rate percentage in trading you should aim for?
Contents
Forex Win Rate Calculator
Forex win rate calculator takes two values and divides them to get the ratio between profitable and losing trades.
Then it multiply that value with 100% to get the outcome in percentage.
What is Trading Win Rate?
When you have the outcome calculated in percentage you get a win rate in trading. That means that trading win rate represents the overall outcome of positive trades compared to all trades you open.
If the win rate is greater than 50% that will mean you have more positive trades than losing trades.
If the win rate is lower than 50% it will mean you have more losing trades than positive trades.
What is the Win Rate Formula?
Win rate takes two variables:
- number of positive trades
- number of losing trades
Then it calculates how much of total trades you have took:
Total trades = Positive trades + Losing trades
Then it divides the number of positives with the number of total trades and multiplies that value with 100%.
Win rate = (Positive trades / Total trades) x 100%
How Do You Calculate Win Rate in Forex?
To calculate win rate in Forex you need to take:
- number of trades you have open
- number of positive trades
- number of losing trade
With these three values you need to enter them into the win rate formula:
Win rate = (positive trades / total trades) x 100%
Let’s make an example.
A total number of trades open is 10. Out of those 10 trades there are 5 positive trades and 5 negative trades:
- number of trades = 10
- positive trades = 5
- negative trades = 5
Win rate = (positive trades / total trades) x 100%
Win rate = (5 / 10) x 100%
Win rate = 0.5 x 100% = 50%
Does Win Rate Matter in Trading?
Win rate matters in trading because if you have more positive trades you will make more money. If the majority of trades are negative trades then it means you are losing money.
When I say that you would make more money there is something you need to pay attention to. And that is risk to reward or R:R.
If you have the same risk to reward ratio 1:3 and you have a 50% win rate that will mean that you are profitable.
Check this example:
- number of trades = 10
- 5 positive
- 5 negative
Win rate = (positive trades / total trades) x 100%
Win rate = (5 / 10) x 100%
Win rate = 0.5 x 100% = 50%
Now, let’s check risk to reward ratio 1:3 which means if you make $3 per one trade you lose $1 per trade.
5 positive trades x $3 = $15
5 negative trades x $1 = $5
Total amount of money earned is:
#positive trades – #negative trades
$15 – $5 = $10
This means that with a 50% win rate you make $10.
What is a Good Win Rate in Trading
In the example above, a win rate that is equal to 50% is a great win rate. Because with 50% of positive trades you would make more than you lose. But the only condition is to have proper risk:reward ratio.
If you lower the win rate below 50% it will be harder to be profitable because you would need to have a better risk:reward ratio. Which means it will be harder to reach profit in those trades because of large take profit.
If you use a risk to reward ratio that is 1:1 and that means for one positive trade you have one negative trade you would end up breakeven with 50% win rate.
So, you could say that win rate 50% is the lowest you should have with a 1:1 risk to reward ratio.
Day Trading Win Rate
If you are a day trader you will for sure have several trades per day. And if you are trading lower time frames as H1 or lower it will mean several trades per day for sure.
And you get a win rate easier to calculate because you have more trades to count.
If you are sticking to a 50% win rate in day trading you will be fine even with risk to reward 1:1. Because that will mean you will end up breakeven.
If you increase the win rate above 50% you will be profitable. If you increase risk:reward ratio above 1:1 you will be profitable.
Let’s go through several examples of win rate so you can understand where the difference is when you increase win rate.
Is a 50% Win Rate Good in Trading?
Here I will use a 50% win rate and the R:R will be 1:1. This means for any positive trade you will make $1 and for each negative trade you will lose $1.
Check this example:
- number of trades = 10
- 5 positive
- 5 negative
Win rate = (positive trades / total trades) x 100%
Win rate = (5 / 10) x 100%
Win rate = 0.5 x 100% = 50%
Total amount of money earned is:
#positive trades – #negative trades
$5 – $5 = $0
This means that with a 50% win rate you make $0.
Is a 60% Win Rate Good in Trading?
Check this example:
- number of trades = 10
- 6 positive
- 4 negative
Win rate = (positive trades / total trades) x 100%
Win rate = (6 / 10) x 100%
Win rate = 0.6 x 100% = 60%
Total amount of money earned is:
#positive trades – #negative trades
$6 – $4 = $2
This means that with a 60% win rate you make $2.
Is a 70% Win Rate Good in Trading?
Check this example:
- number of trades = 10
- 7 positive
- 3 negative
Win rate = (positive trades / total trades) x 100%
Win rate = (7 / 10) x 100%
Win rate = 0.7 x 100% = 70%
Total amount of money earned is:
#positive trades – #negative trades
$7 – $3 = $4
This means that with a 70% win rate you make $4.
Win Rate Results
This table shows you how win rate effects on the final results. Will you be breakeven or profitable.
| Number of traders | Positive Trades | Negative trades | Win Rate | R:R | Profit |
| 10 | 5 | 5 | 50% | 1:1 | $0 |
| 10 | 6 | 4 | 60% | 1:1 | $2 |
| 10 | 7 | 3 | 70% | 1:1 | $4 |
How Can I Increase My Trading Win Rate?
You have seen in the examples that the win rate is determined by the number of positive trades. And to increase win rate you need to increase the number of profitable trades.
How to increase the number of positive trades?
It is not so easy, but if you have a 50% win rate you are very good. And how to increase that to 60%?
Well, first is to check the results and see if there is a pattern that occurs in your trading. If yes then you need to repeat trading with that pattern so you increase the number of positive trades. This is the only way you can increase win rate with that trading strategy.
Second way is to find a better strategy that will give you better results.
Conclusion
Win rate is an important part in trading and with 50% you can make lots of money. But, to have a 50% win rate profitable you need to have a better R:R ratio.
If you do not change R:R you need to increase the win rate to have more positive trades than the negative ones.
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