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Understanding Trade Analytics: Net P/L, Win Rate, Drawdown and More

Trade analytics summarises your settled trades in one view. This guide explains each metric and uses a real example where a 54% win rate still lost money.

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The headline metrics

The Trade analytics panel for 50 settled trades showing Net P/L, Win rate, Profit factor, Expectancy, Max drawdown and Total staked, with a Performance curve and a Win/loss shape chart.
Trade analytics for 50 settled trades on Volatility 100 (1s).
Metrics in Trade analytics and what they mean
MetricWhat it tells youHow it is worked out
Net P/LTotal profit or loss, also shown as a share of your stakeSum of all settled results
Win rateHow often trades winWins ÷ settled trades (27W · 23L = 54%)
Profit factorWinning money compared with losing money. Below 1 means losses outweigh winsGross profit ÷ gross loss
ExpectancyYour average result per settled tradeNet P/L ÷ number of trades
Max drawdownThe biggest fall from a peak in your running resultLargest peak-to-trough drop
Total stakedMoney put into trades, with the average stakeSum of stakes

Metrics in Trade analytics and what they mean.

Deriv defines drawdown as a measure of how risky an investment is by looking at how much it goes down, from its highest value to its lowest, and profit factor as a comparison of total profit from winning trades with total costs from losing trades.

Reading the example: why 54% can still lose

In the screenshot above, 27 of 50 trades won. That sounds good, yet the session lost money. The numbers explain why:

Numbers from the example session
NumberValueWhat it shows
Win rate54.0% (27 won, 23 lost)More wins than losses
Average win3.25Small wins
Average loss6.97Losses are about twice as large
Payoff0.47×Average win ÷ average loss (3.25 ÷ 6.97)
Profit factor0.55Winnings were about 55% of losses
Expectancy−1.45 per trade−72.62 ÷ 50 trades
Net P/L−72.62 (−27.19% of stake)Total result
Max drawdown117.71Largest fall from a peak

Numbers from the example session.

Win rate is only half the story

Because binary payouts are below 100% of the stake, and some staking strategies make losses larger than wins, a win rate above 50% does not guarantee a profit. Always read it alongside average win, average loss and profit factor.

The performance curve and win/loss shape

  • Performance curve plots your cumulative net P/L across trades. Switch between Equity, Drawdown and Per trade views.
  • Win/loss shape shows a win-rate ring and the size of your wins against your losses: average win, average loss, largest win and largest loss.

Use the drawdown view and your largest loss to check that your stop loss and stake size are realistic.

A quick checklist

  • Is expectancy positive, or are you losing on average per trade?
  • Is the profit factor above 1?
  • Is the max drawdown something you could live with on a real account?
  • Is your largest loss far bigger than your average loss? That can be a sign that a progression strategy is climbing.

Practise on a Deriv demo account before you use real money.

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Frequently asked questions

What is a good win rate?
There is no single number. A win rate only means something with your average win, average loss and payouts. The example above won 54% of trades and still lost money.
What does a profit factor below 1 mean?
Losing trades cost more than winning trades earned, so the session is in loss.
What is max drawdown?
The largest fall in your running result from a previous high point to a later low point.

Keep reading

Sources

Risk warning: Trading binary options involves a high level of risk and you could lose your entire stake. Only trade with money you can afford to lose. This page is educational and is not financial advice.