📈 What is a Realistic Trading Win Rate?

It's lower than you think.

Trading Win Rates

Something that I see on social media frequently that frustrates me is influencers telling their followers that they have trading strategies that work for them 80-90% of the time.

This is simply not true.

Can you have that success rate over a short period of time? Yes.

Can you have that success rate over a long period of time? No.

Trading comes down to trade management and quantifying your risk. If you are able to do this effectively, you can make money in the market at a win rate below 50%.

Win Rate Comparisons

Let’s think about it from the perspective of some of the best traders in the world.

Steve Cohen is the owner of the Mets and runs one of the largest hedge funds in the world. His win rate is 55%.

His best trader’s win rate is 62%.

Keep this in mind when you see on social media that people have win rates upwards of 75%.

What I want you to take away from this is the understanding that being right is not the be all end all of trading. Managing your risk is.