No matter how long you’ve been trading, it’s important to monitor your performance so that you can identify both your strengths and weaknesses. To help you track your progress, we’ve compiled a list of fourteen key statistics that every trader should be monitoring. Trust us, knowing these numbers will give you a serious edge in the market!

Net Profit

This statistic is your bottom line: How much money did you make (or lose) overall? Simply, it’s gains minus losses. You can choose to include the costs of trading into your calculation — equipment, broker fees and commissions, signal services, etc.

Win %

This statistic is the percentage of trades that you win — calculated by dividing the total winning trades by the total trades. A good rule of thumb is to try and achieve a 60/40 win rate, meaning 60% of your trades should be profitable.

Loss %

This statistic is the exact opposite of Win %. It’s the percentage of trades that you lose — or total losing trades divided by total trades. Once again, try to keep this number as low as possible.

Largest Winning Trade

This statistic tracks how much money you made on your best trade — and is often removed from the “average win” calculation so as not to skew your numbers with an abnormally large win.

Largest Losing Trade

This statistic tracks how much money you lost on your worst trade — and is often removed from the “average loss” calculation so as not to skew your numbers with an abnormally large loss.

Average Winning Trade

This statistic is a calculation of the average amount you made on all your winning trades — and helps to paint a picture of how successful you are. It’s calulated as the total gain from wins divided by the number of winning trades.

Average Losing Trade

This statistic is the exact opposite of Average Winning Trade — it’s a calculation of how much you lost on average from all your losing trades. It’s calulated as the total amount of losses divided by the number of losing trades.

Profit Factor

This statistic is calculated by dividing total gains from all trades by total losses from all trades — and helps to show how profitable your system is. The higher the number, the better!

Average Holding Time per Trade

This statistic is a calculation of how long you usually hold onto trades — dividing total holding time by the number of trades.

P/L of Long Trades & P/L of Short Trades

This statistic helps you to determine which type of trading — long or short — is more profitable for you. It’s calculated by adding up the gains and losses from long trades and then doing the same for short trades.

Largest # of Consecutive Losses

This statistic is a good indicator of how your trades are going — it’s the count of the largest string of consecutive losses you’ve had. Try to keep this number as low as possible.

Average # of Consecutive Losses

This statistic is a calculation of how many consecutive losses you have had, on average. To calculate, first identify all of your strings of consecutive losses, and count how many you had. Then, add up all of the losses in these consecutive strings, and divide by the count of the number of strings.

Maximum Drawdown

This statistic is the maximum amount of money you’ve lost from your peak balance — and helps to indicate how much risk you’re taking on.

Expectancy Score

Finally, this statistic helps to measure how successful your system is. It takes into account the average winning trade, average losing trade and win % to give you a score out of 100. A higher score indicates more profitable trading. This can be calculated by multiplying the loss percentage by the average loss and subtracting it from the win percentage times the average win.

Overall, these are the statistics you should use to measure your success as a trader. If you’re able to keep track of all these numbers and use them to optimize your system, you’ll be able to see better results in the long run.

 


Disclaimer: All information provided here is intended solely for study purposes related to trading financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity, analysis, or similar general recommendation regarding the trading of investment instruments. The content, in its entirety or parts, is the sole opinion of SurgeTrader and is intended for educational purposes only. The historical results and/or track record does not imply that the same progress is replicable and does not guarantee profits or future profitable trading records or any promises whatsoever. Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose.