The proportion of trades that are profitable, expressed as a percentage of total trades. For example, if a backtest placed 100 trades and 55 of them were winners, the win rate is 55%. A high win rate means the strategy wins often, but it doesn’t guarantee overall profitability (the size of wins vs. losses matters too). Conversely, a strategy can have a win rate below 50% and still be very profitable if its winners are much larger than its losers. In backtesting results, win rate is a basic success metric. Traders often evaluate win rate alongside metrics like risk-reward ratio, profit factor, and drawdown to get a complete picture of the strategy’s performance profile.

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