# The 10 Trading Metrics That Actually Matter > There are dozens of trading metrics you could track. Here are the 10 that actually predict and drive profitability improvement. **Tags:** metrics, analytics, performance, summary **URL:** https://traderjournal.app/trading-metrics/10-trading-metrics-that-actually-matter --- # The 10 Trading Metrics That Actually Matter Most trading analytics tools give you more metrics than you can meaningfully use. Here are the 10 that have real predictive and diagnostic value for retail traders. --- ## 1. Net P&L (After All Costs) The bottom line. Not gross profit - net profit after commission and swap. This is the number that changes your actual account balance. All other metrics should be evaluated in the context of whether they are improving this number over time. --- ## 2. Profit Factor Gross profit / Gross loss. Values above 1.0 mean you are making more than you are losing. The most informative single-ratio summary of strategy performance. Target: above 1.3 for sustainable profitability. --- ## 3. Expectancy The average dollar (or R-multiple) you make per trade across winning and losing trades combined. Directly predictive of long-term account growth. Positive expectancy = long-term profitability (assuming consistent execution). --- ## 4. Win Rate Your win rate matters only in the context of your average win/loss ratio. But it is important for understanding how your strategy distributes results and for calibrating your psychological expectations for losing streaks. --- ## 5. Average Win to Average Loss Ratio What do you make on average when you win vs what you lose on average when you lose? The ratio directly shows your realized risk-reward profile. Should be above 1.0 unless compensated by a significantly higher win rate. --- ## 6. Maximum Drawdown The largest peak-to-trough equity decline in the measurement period. The most important risk metric. Tells you how bad things got at the worst point. Should be kept below 20% for most retail strategies to maintain psychological and mathematical survivability. --- ## 7. Profit Factor by Setup Type Profit factor calculated separately for each of your setup tags. This is where your journal's tagging data produces the most actionable insight: which setups have edge and which do not. --- ## 8. Performance by Time Period (Day of Week and Hour) Which days and hours of the day produce the best and worst results. Scheduling your trading around your highest-performance windows is one of the most directly actionable improvements available. --- ## 9. Equity Curve Slope and Smoothness Is your equity trending upward over time, and how volatile is the path? A smooth, rising equity curve indicates consistent risk management and a genuine edge. A volatile curve with large swings indicates high variance even if net profitable. --- ## 10. Execution Quality vs Outcome Your star rating distribution compared to your P&L distribution. Do your 5-star trades (well-executed) produce better results than your 1-2 star trades (rule violations)? If yes, you have evidence that discipline pays. If no, either your rating system needs calibration or something else is at play. --- ## How to Use These 10 Metrics Review all 10 monthly. Track their trend over 6 months. The metrics that improve together indicate genuine edge development. The metrics that deteriorate together indicate a problem worth investigating. Do not attempt to optimize all 10 simultaneously. Identify the metric that is farthest from your target and work on the specific behavior that would improve it. One improvement at a time, evidenced by monthly data. --- Trader Journal tracks all 10 of these metrics automatically through the EA sync and the Reports tab. Download at android.traderjournal.app or ios.traderjournal.app.