Performance metrics

Read trading statistics with explicit formulas, worked examples, and sample limits.

• What is the difference between expectancy in money and expectancy in R?

  Keep account-unit averages and risk-normalised averages separate when comparing trading results.

• Why does candle resolution matter when reviewing MAE and MFE?

  Understand excursion coverage and intrabar uncertainty before drawing conclusions about stops or exits.

• What can a trading-journal Monte Carlo simulation actually tell me?

  Interpret resampled R sequences as a conditional model rather than a forecast or live equity simulation.

• Why can a trade's price R differ from its net R?

  Work through initial stop distance, signed price movement and costs without treating missing risk as zero.

• How should I calculate profit factor after trading costs?

  Calculate profit factor from net trade outcomes and interpret zero-loss and empty samples correctly.

• What does realised drawdown tell me about my trading journal?

  Interpret declines in cumulative closed-trade P&L without confusing them with live account equity risk.

• How much confidence should I place in a small trade sample?

  Use sample size, coverage and selection discipline when interpreting journal statistics and subgroup rankings.

• Why is win rate an incomplete measure of trading performance?

  Read winning-trade frequency alongside net payoff, costs and sample definitions.