what the win loss ratio can tell you
the win loss ratio is used mostly by day traders to assess their daily wins and losses from trading and as a way to gauge the success of the trading strategy that they used for example if the win loss ratio shows more wins than losses then they might continue using their current strategy all other things being equal if the ratio shows more losses than wins they might review and fine tune their trading strategy to address why they had those losses the win loss ratio is often used with the win rate which is the number of trades that make money out of the total number of trades conducted together the win loss ratio and the win rate can help traders understand the probability of their trading being profitable active traders should make it a habit to regularly review their win loss ratios risk reward ratios and win rates to stay on top of their trading efforts and avoid losing too much money essentially win loss ratios and win rates can alert you to how often you are winning or losing money on your trades 