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Risk Management

Win Rate

The percentage of trades that are profitable out of total trades taken.

Full Definition

Win rate (or hit rate) is the number of winning trades divided by total trades, expressed as a percentage. A 60% win rate means 6 out of 10 trades are profitable. While a high win rate is desirable, it must be evaluated alongside risk-reward ratio. A strategy with a 40% win rate can still be highly profitable if winners are significantly larger than losers.

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