Trading psychology
What are the key metrics I should track in my journal (e.g., Profit Factor, Win Rate, Expectancy)?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Key journal metrics include win rate, average win/loss ratio, profit factor, and expectancy, which together quantify whether a trading strategy is statistically profitable over many trades.
How it works
Profit factor is gross profits divided by gross losses, while expectancy calculates the average amount won or lost per trade, accounting for both win rate and payoff ratio.
An example
A strategy with a 40% win rate but a 3:1 reward-to-risk ratio can still have positive expectancy and be profitable over a large sample of trades.
Risk & limitations
Metrics calculated on small sample sizes can be misleading; a meaningful sample typically requires many dozens of trades before drawing reliable conclusions.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.