Hit rate
The share of trades that made money.
In plain English
If 47 out of 100 trades were profitable, the hit rate is 47%. On its own it says nothing about how big the wins and losses were.
Uncle Gary explains
Uncle Gary wins 70% of his bets on the horses. He is also broke, because the 30% he loses are huge. Hit rate without the size of the wins and losses tells you almost nothing.
Why it matters for your money
A 47% hit rate can make money and a 70% one can lose it. You always need both numbers.
Where we tested it
- Does the Golden Cross Work? We Tested 72 Strategies
- Can AI Predict Stock Prices From the News? We Asked It 599 Times
- Does Buying the Dip Work? We Checked Which Dips
- How Many Bad Days in a Row Before the Universe Is Against You?
- How Many Meetings Could Have Been Emails?
- Lesson 4: Probability Without Tears
- Who Does More Housework? Why Couples Add Up to 140%
- Does a Stop-Loss Protect Your Money? We Tested Tight and Wide Stops
- Lesson 13: Expected Value: What a Bet Is Worth on Average
Related terms
All glossary terms. Educational content, not financial advice.