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A high win rate is not a result

XAU Audit3 min read

Win rateRiskReturn R

XAU AUDIT · METRICS 7 WINS × +€100 · 3 LOSSES × −€300 70% → −€200 16 channels win 6 in 10 and still lose money 0.1 lot · broker execution · demo account
Article contents (3)
  1. The arithmetic
  2. What our records show
  3. Better numbers to look at

“87% win rate” is the most common line in a channel’s description. It is also one of the least useful numbers you can be given, because it says how often you win and nothing about how much.

The arithmetic

A channel with tight targets and wide stops wins often and loses big. Seven wins out of ten looks excellent until you add them up:

7 signals × +€100 = +€700 3 signals × −€300 = −€900 ---------------------------------- win rate 70% −€200

That is not a rare case. It is the normal shape of a channel that moves the stop away and takes profit early.

What our records show

We looked at the 117 channels with at least 20 signals in our records and counted, for each, the signals closed in profit against those closed in loss (signals that ended partly at a target and partly at the stop are left out).

106channels close at least 6 in 10 signals in profit
16of them are losing money anyway
7 of 77channels at 7 in 10 or better are still negative

A high win rate is common. A positive result is not the same thing, and the gap between the two is the size of the average loss.

Better numbers to look at

All four are in the dashboard for every channel. How they are calculated is on the methodology page.

Today’s results don’t guarantee tomorrow’s. Channels win and lose. These numbers describe what already happened on our demo account; they are not advice and not a promise.

All results from our demo account at the broker, shown for 0.1 lot per order, euro account. Every signal is executed as published: one order per target, the channel’s own stop, closed by the broker. Results are hypothetical for real trading: spread, slippage, timing and size can change them. Channel names are not shown here; subscribers see them in the dashboard.

See every channel’s record, signal by signal.

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