The win rate is the percentage of profitable trades out of all forex transactions. For example, if 5 trades are made in a day and 3 of them are profitable, then the daily win rate is 60%. If 100 trades are made in a month and 60 of them are profitable, then the monthly win rate is 60%.
The profit/loss ratio is the ratio of profit orders to loss orders. For example, if out of 100 trades, 60 trades are profitable and 40 are losing, then the profit/loss ratio is 60/40 = 1.5, which means that the number of profits is 50% more than the number of losses.
Most Forex traders are very concerned about their win rate. Of course, a high win rate is a good thing, but it doesn't mean that the trade is ultimately successful or even profitable.
A win rate above 1 or a win rate above 50% is good for the investor, but it does not mean overall success. If the amount of losses is much greater than the amount of profits, even with a high win rate, you will end up with a loss. All Forex traders should consider the risk/reward ratio along with the win rate.
Source: EXNESS Rebates http://www.forexrebateking.com/brokers/exness-forex-rebates
The profit/loss ratio is the ratio of profit orders to loss orders. For example, if out of 100 trades, 60 trades are profitable and 40 are losing, then the profit/loss ratio is 60/40 = 1.5, which means that the number of profits is 50% more than the number of losses.
Most Forex traders are very concerned about their win rate. Of course, a high win rate is a good thing, but it doesn't mean that the trade is ultimately successful or even profitable.
A win rate above 1 or a win rate above 50% is good for the investor, but it does not mean overall success. If the amount of losses is much greater than the amount of profits, even with a high win rate, you will end up with a loss. All Forex traders should consider the risk/reward ratio along with the win rate.
Source: EXNESS Rebates http://www.forexrebateking.com/brokers/exness-forex-rebates
