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Trading glossary · risk

breakeven win rate

The smallest share of trades you must win so your wins pay for your losses. Bigger wins let you lose more often.

The fuller meaning

The win rate at which a method's expected result is zero: 1 / (1 + R), where R is average win divided by average loss. At 1R you need 50%, at 2R about 33% and at 3R 25%. Costs and spread raise it, so a real method needs a margin above it.

breakeven win rate, also called break-even win rate.

Related words

1% rule · ATR stop · average loss · average win · breakeven · correlation · daily loss limit · drawdown · equity curve · exposure