Reading test results
A test report is full of numbers. These are the ones that tell you whether a strategy is worth trading.
| Metric | Meaning | A healthy sign |
|---|---|---|
| Number of trades | Sample size | 100+ (30 at the very least) |
| Win rate | % of winning trades | Makes sense with the R:R |
| Average win / loss (R) | Size of wins vs losses | Consistent with your exits |
| Expectancy (R) | Average result per trade | Clearly above 0 after costs |
| Profit factor | Gross profit ÷ gross loss | Above 1.3; above 2 is excellent (and rare) |
| Maximum drawdown | Worst peak-to-low fall | Something you could live through |
| Longest losing streak | Most losses in a row | Plan your sizing around it |
| Recovery factor | Net profit ÷ maximum drawdown | Above 3 is solid |
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- 🔒 Key takeaways and quiz
GoldBot Academy is free education. Nothing here is financial advice; trading carries a high risk of loss.