There is no single good win rate for day trading. A 40% win rate can be highly profitable if average winners are significantly larger than average losers. An 80% win rate can lose money if occasional losses are very large.
Win rate only becomes meaningful when evaluated alongside average winner, average loser, profit factor, and expectancy. A trader with a 45% win rate and a 3:1 reward-to-risk ratio will outperform a trader with a 70% win rate and a 1:3 reward-to-risk ratio.
Instead of chasing a target win rate, focus on whether your win rate combined with your average win and loss size produces positive expectancy over a meaningful sample of trades.
Read the full guide →