Simple Question/Help Needed About Win/Loss Ratio

May 9th, 2023, 10:52 PM

I can't seem to find an answer to this question anywhere on the internet so I was hoping someone could help here.

What I'd like to know is if you Scale In or Scale Out of a position how does this affect the win/loss ratio in the performance stats? For instance if I take a position and have 5 different Scale Out Take Profit levels, would that count as 5 seperate wins in the performance stats and positively affect my win/loss ratio even though I'm simply just scaling out of one larger initial position?

Same thing with losses. If I Scale Out of a position with 5 different Stop Loss levels as price moves against me, does that count as 5 seperate losses negatively affecting my win/loss ratio?

Any help or clarification is appreciated. Thanks.

May 11th, 2023, 08:54 AM

@excite2

It depends on the program you use for your stats. Tradervue for instance would either count trades as individual contracts or as going from flat to flat (from the first contract going on to the last of the positition taking you to out of the market again (or reversing direction), depending on the preference chosen when importing trade data taken from the trading platform. Jigsaw daytradr is another that puts contract results together in to one trade from flat to flat.

Personally I like flat to flat for the scaling in and out reasons you mention affecting the number of trades. And then also have expectancy as another metric to show what the expected profit or loss is per individual round turn.

May 11th, 2023, 10:15 PM

Thanks Matthew28, but I would think there is some universal accounting standard for how this works instead of relying on the individual platform that is being used. If that's the case, then how do you compare the stats of two different traders if wins/losses are calculated different depending on the program being used

Simple Question/Help Needed About Win/Loss Ratio

Discussion in Commodities

Simple Question/Help Needed About Win/Loss Ratio