Trading Performance Metrics: Formulas and Data Limits

Trading performance metrics describe a defined set of records. They become useful when you know the reporting period, costs, cash flows and calculation method. A large ratio does not establish a reliable trading edge, and a smooth closed-trade curve does not reveal every open-position risk.

This guide starts with a transparent hypothetical example, then explains MyVeridex's current scheduled account calculations, reviewed on 3 October 2026. The worked numbers are illustrations, not customer results, return targets or forecasts.

One sample, four basic measures

Suppose a sample contains ten closed trades: six wins of $100 each and four losses of $75 each. Assume the amounts already reflect every cost you intend to include. There are no deposits, withdrawals or breakeven trades in this example.

The same expectancy can be checked as 0.60 × $100 minus 0.40 × $75 = $30. This describes the sample's average. It does not say the next trade will earn $30 or that ten trades establish a stable long-term distribution.

Profit factor needs actual losses and consistent costs

A profit factor of 2 means gross winning profit in the selected sample is twice absolute gross losing profit. It says nothing about the order of those trades, the size of temporary losses or whether position size changed.

If the sample contains no losing trades, the denominator is zero and the ratio is undefined. MyVeridex's current database calculation stores that case as null rather than a fabricated large score. A particular display may show a fallback value, so check the underlying sample before interpreting an apparent zero or exceptional number.

The stored calculation uses recorded trade profit. Where commission or swap fields are recorded separately, confirm their treatment rather than calling the ratio automatically all-in. Compare the same cost basis across tools. Deposits are cash flows, not winning trades.

Win rate and expectancy answer different questions

Win rate measures frequency, not the size of a win or loss. A high win rate can coexist with negative expectancy when losses are much larger than wins. A lower win rate can coexist with positive sample expectancy when wins are sufficiently larger.

In MyVeridex's stored calculations, wins are trades whose recorded profit is positive. Closed trades provide the denominator, including breakeven trades. Its scheduled expectancy is the mean recorded profit per closed trade. Read the account currency and fees alongside that amount; $30 per trade is not directly comparable with €30 or a different account size.

Use R-multiples only when the original risk is known

R expresses an outcome relative to the risk planned for a trade. If the original defined risk was $100 and the realized net result was $150, the result is +1.5R. A $100 loss on that same original risk is -1R.

This calculation requires a reliable original risk amount. Do not reconstruct it from a later stop or substitute account balance for trade risk. If fees are included in the result, use that convention consistently. R is a useful journal concept; do not assume a connector can infer every original risk decision from a closed-trade record.

Drawdown depends on which equity curve you measure

Percentage drawdown is the decline from a prior equity peak to a subsequent trough, divided by that peak. In a simple hypothetical curve that peaks at $10,000 and then falls to $9,000, drawdown is 10%. Recovering from $9,000 to $10,000 requires about 11.1% of the lower amount, not 10%.

MyVeridex's current scheduled calculation reconstructs a curve from closed-trade profit. It estimates starting equity from the current balance and closed-trade totals. This approximation is sensitive to account cash flows and available history. It does not measure every intratrade equity low or continuously include open positions.

Consequently, this closed-trade drawdown is not the authoritative measure of a firm's daily or overall loss limit. Check the firm's current account-stage rules and its own dashboard, including timezone, balance versus equity, open positions and reset boundaries. A product's analytics cannot promise that a limit has not been breached.

Sharpe, Sortino and Calmar require matching definitions

Conventionally, Sharpe compares excess returns with return variability, Sortino focuses on downside variation relative to a chosen target, and Calmar compares an annualized return measure with maximum drawdown. Their values depend on return frequency, target or risk-free assumptions, annualization and the underlying equity series.

The current MyVeridex scheduled calculation groups closed-trade profit by close date. Its Sharpe estimate uses mean daily cash profit divided by population standard deviation, scaled by the square root of 252, with at least five trading dates. It does not subtract a risk-free rate or use percentage account returns.

Its Sortino estimate also uses daily cash profit, with a zero target and squared negative daily amounts divided by the number of represented trading dates. If there is no measured downside, the stored fallback is zero; this is not evidence of perfect risk-adjusted performance.

The scheduled Calmar estimate annualizes cash profit over represented trading days and divides by an absolute closed-trade drawdown amount. These are implementation-specific estimates. Do not compare them directly with a service using percentage returns, a different observation calendar or mark-to-market equity. Other API surfaces can use different calculations; inspect the source and period of a reported value.

Recovery and consistency are also scoped measures

The scheduled recovery factor is recorded total closed-trade profit divided by the absolute reconstructed maximum drawdown. A missing or zero denominator prevents a meaningful ratio. Deposits and incomplete history can distort the reconstructed basis.

MyVeridex's current scheduled consistency measure is the proportion of represented months whose closed-trade profit is positive. It is not a prop firm's best-day-profit share and does not establish compliance with a specific firm's consistency rule. Name the formula whenever you share a consistency percentage.

A practical review sequence

1. Reconcile trade count, cash flows and costs to the original statement.
2. Review sample profit factor and expectancy with trade count, account currency and sizing.
3. Inspect the curve, losing periods and open-position risk rather than relying on a single score.
4. Compare the same period and formula across reports. Record missing observations and any import limitations.
5. Repeat the review over subsequent complete periods without treating past results as a forecast.

Use MyVeridex's public tools for separate calculation exercises and the verification guide to disclose where an account report came from. The analytics comparison checklist helps reconcile metrics when you evaluate another service. Always explain the data and definition behind a number before presenting it as evidence.

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