Monthly Trading Statistics Calculator
Calculate monthly trading statistics: win rate, average RR, expectancy, and profit factor. Enter values for instant results with step-by-step formulas.
Formula
Expectancy = (Win Rate x Avg Win) - (Loss Rate x Avg Loss)
Expectancy measures the average profit or loss per trade. Profit factor is gross profits divided by gross losses. The Kelly Criterion determines optimal position sizing based on win rate and payoff ratio. All metrics work together to provide a complete performance assessment.
Worked Examples
Example 1: Profitable Day Trader Monthly Review
Problem: A day trader took 40 trades in a month, winning 22 and losing 18. Average win was $250 and average loss was $150. Account size is $100,000.
Solution: Win Rate: 22/40 = 55%\nAvg Risk-Reward: $250 / $150 = 1.67\nGross Profit: 22 x $250 = $5,500\nGross Loss: 18 x $150 = $2,700\nNet Profit: $5,500 - $2,700 = $2,800\nProfit Factor: $5,500 / $2,700 = 2.04\nExpectancy: (0.55 x $250) - (0.45 x $150) = $137.50 - $67.50 = $70 per trade\nExpectancy in R: $70 / $150 = 0.467R\nMonthly Return: $2,800 / $100,000 = 2.8%
Result: Win Rate: 55% | Profit Factor: 2.04 | Expectancy: 0.467R | Monthly: 2.8%
Example 2: Swing Trader with High RR Low Win Rate
Problem: A swing trader took 15 trades, won 5 (33% win rate), with $800 average wins and $300 average losses on a $50,000 account.
Solution: Win Rate: 5/15 = 33.3%\nAvg Risk-Reward: $800 / $300 = 2.67\nGross Profit: 5 x $800 = $4,000\nGross Loss: 10 x $300 = $3,000\nNet Profit: $4,000 - $3,000 = $1,000\nProfit Factor: $4,000 / $3,000 = 1.33\nExpectancy: (0.333 x $800) - (0.667 x $300) = $266.67 - $200 = $66.67 per trade\nExpectancy in R: $66.67 / $300 = 0.222R\nMonthly Return: $1,000 / $50,000 = 2.0%
Result: Win Rate: 33.3% | Profit Factor: 1.33 | Expectancy: 0.222R | Monthly: 2.0%
Frequently Asked Questions
What are the most important monthly trading statistics to track?
The five most critical monthly trading statistics are win rate, average risk-reward ratio, expectancy, profit factor, and maximum drawdown. Win rate tells you how often you profit, but it means little without context from the risk-reward ratio. Expectancy combines both metrics to show your average profit per dollar risked. Profit factor divides gross profits by gross losses and should be above 1.5 for a robust strategy. Maximum drawdown shows your worst peak-to-trough decline and indicates whether your strategy could survive adverse market conditions. Tracking these five statistics monthly creates a performance dashboard that reveals whether your trading edge is strengthening, weakening, or remaining stable over time.
What is a good win rate for a trading strategy?
A good win rate depends entirely on your average risk-reward ratio because the two metrics are interconnected. A scalping strategy might have a 70% win rate but only average 0.8R per win, while a trend-following strategy might win only 35% of trades but average 3R per win. Both can be highly profitable. Generally, win rates between 40% and 60% are most common among consistently profitable traders. Win rates above 70% often indicate a strategy that takes profits too quickly, leaving significant gains on the table. Win rates below 30% can be profitable but are psychologically challenging because of long losing streaks. The key metric is not win rate alone but the combination of win rate and average R-multiple, expressed as expectancy.
What is trading expectancy and how do I use it?
Trading expectancy is the average amount you expect to make per dollar risked over many trades. It is calculated as: Expectancy = (Win Rate x Average Win) - (Loss Rate x Average Loss). When expressed in R-multiples, a positive expectancy means your strategy has a mathematical edge. For example, an expectancy of 0.35R means you earn $0.35 for every $1 risked on average. To estimate monthly income: multiply expectancy by risk per trade in dollars and then by the number of trades per month. If your expectancy is 0.35R, you risk $500 per trade, and you take 40 trades per month, your expected monthly profit is 0.35 x $500 x 40 = $7,000. This assumes consistent execution without emotional interference, which is why realized expectancy is often lower than calculated expectancy.
How do I identify if my trading performance is deteriorating?
Performance deterioration can be identified through several warning signs in your monthly statistics. Watch for a declining rolling win rate over 3 or more consecutive months, a decreasing average R-multiple on winning trades, an increasing average loss size, or a profit factor trending below 1.5 toward 1.0. Other red flags include increasing frequency of maximum loss trades, deteriorating expectancy, or widening deviation between planned and actual risk-reward ratios. Compare your current month statistics against your trailing 6-month average. If your current month falls more than one standard deviation below your average in multiple metrics simultaneously, your edge may be eroding. This could be due to changing market conditions, psychological fatigue, strategy decay, or a combination of factors requiring systematic review.
What is the difference between gross and net trading performance?
Gross trading performance measures profits and losses from trade results alone, while net performance includes all costs associated with trading. These costs include commissions and broker fees, spread costs on each entry and exit, swap or overnight financing charges, platform or data feed subscriptions, and any prop firm challenge or monthly fees. The difference between gross and net can be substantial, especially for high-frequency traders. A scalper making 100 trades per month at $5 round-trip commission pays $500 monthly in commissions alone. If gross profit is $2,000, the net profit is only $1,500, a 25% reduction. When calculating monthly statistics, always use net figures for accurate performance assessment, as a strategy that appears profitable on a gross basis may actually lose money after all costs are included.
How should I set monthly performance goals for my trading?
Monthly performance goals should be process-oriented rather than outcome-oriented because you cannot control market conditions. Instead of targeting a specific dollar return, set goals around metrics you can control: maintain your planned risk per trade within 10% deviation, execute at least 90% of trades according to your strategy rules, achieve a minimum number of trading setups reviewed per day, and keep your average loss at or below 1R. For outcome metrics, use ranges rather than fixed targets. A reasonable monthly return target for most strategies is 3-8% of account size, understanding that some months will be negative. Set a monthly maximum loss threshold (perhaps 6-8% of account) at which you stop trading and review your approach. This prevents a single bad month from causing catastrophic damage to your account.