Trading performance & risk

To read your strategy honestly, you need three lenses: win rate (the percentage of winning trades), payoff ratio (average win divided by average loss), and profit factor (gross profit divided by gross loss). Day traders often talk about win rate as if it were a badge of honor, but a high hit rate can hide […]

Max drawdown (MDD) is the worst peak-to-trough drop your equity curve suffers before a new high is made. Think of it as the deepest hole you fell into along the way. It’s computed on cumulative equity (or account balance), not on a single trade, and it’s expressed as a percentage. Because it focuses on downside