I've noticed that many traders get fixated on a single indicator and then wonder why they aren't making money. I'm talking about the win rate — perhaps the most overrated metric in trading.

The win rate shows what percentage of your trades close in profit. It's simple to calculate: divide the number of profitable trades by the total number of trades and multiply by 100. If out of 50 trades, 30 are profitable, then the win rate is 60%. Sounds logical, right? But here’s the catch.

A high win rate, like 80-90%, isn't always good. Often, it means you're taking small profits, but when a loss occurs, it can be huge. Conversely, a win rate of 40-50% can be quite effective if your wins are two or three times larger than your losses.

I've seen traders with a 70% win rate who blew their deposit in a month. And I know people with a 45% win rate who consistently make money. The difference is that they consider not only the win rate but also the risk-reward ratio. If you're risking a dollar to make two, that's a completely different story than risking two to make one.

How to improve your metrics? First, keep a trading journal. Analyze where you went wrong. Second, trade according to a clear strategy without emotions. Third, only enter trades with obvious signals, not by guessing. And most importantly — avoid trades with poor risk-reward ratios, even if you feel confident.

In practice, the win rate is calculated manually. Go into your transaction history, export the data for a period, count the profitable and losing trades. Yes, it’s tedious, but you’ll definitely understand how your system really works. If you want to automate it, there are third-party tools for statistical analysis.

In the end: the win rate is just one tool for evaluating a strategy. But by itself, it says nothing about profitability. It’s important to look at the whole picture: win rate plus risk management plus capital management. That’s a working system.