Win rate gets attention because it is easy to understand, but it does not tell the full story of a trading approach. Risk-to-reward and the size of wins and losses matter too.
What win rate tells you
Win rate is the percentage of completed trades classified as wins under a stated rule. It is useful only when the sample, timeframe and definition of a win are clear.
What risk-to-reward tells you
Risk-to-reward compares the amount at risk with the potential or realized reward. A strategy can have a modest win rate and still produce a positive total result if average winning trades are sufficiently larger than losses.
Why one number is not enough
A high win rate with poor loss control can still be unprofitable. A lower win rate can still be viable when the payoff profile is strong. Traders should evaluate win rate together with total R, average R, sample size and the exact outcome rules.
How NGF reports performance
NGF performance snapshots are shown with timeframe and sample size. S&P 500 and Nasdaq use a defined win rule where TP2 counts as a win, while NGF Gold records the complete trade outcome. These methods should not be treated as directly identical.
Historical indicator data is not a guarantee of future performance. Trading involves risk.