Portfolio·2026-11-10·6 min read·Striv Research · usestriv.com
Beyond Win Rate: Profit Factor and Net Expectancy
A high hit rate still leaks capital after funding and taker fees. Read profit factor and expectancy directly from persisted trade logs.
The hidden danger of win-rate optimization
Taking tight profits while widening stops creates an encouraging 70% win rate until a single outsized loss wipes out twenty winning trades.
Deterministic journal math surfaces whether your average winner outweighs your average loser once real fees are counted.
Three metrics every weekly review should verify
- Profit Factor: Gross winning dollars divided by gross losing dollars after fees.
- Net Expectancy: Average dollar return expected per trade from your recorded sample.
- Fee & Funding Drag: Percentage of gross edge surrendered to high-turnover taker executions.