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On trading, journaling, and the tools we build at Tradeways.
GlossaryMetricsR-multiple
An R-multiple expresses a trade result as profit or loss measured in units of the initial risk you put at stake when you entered.
3 min read
GlossaryMetricsRealized vs. unrealized P&L
Realized P&L is profit booked when you close a position; unrealized P&L is the open, mark-to-market gain or loss on positions still running.
3 min read
GlossaryMetricsBreakeven win rate
The minimum percentage of trades you need to win to break even at a given reward-to-risk ratio, before costs.
3 min read
GlossaryMetricsTrading expectancy
Expectancy is the average profit or loss you can expect per trade, measured across a large sample of trades rather than any single outcome.
3 min read
GlossaryMetricsProfit factor
Profit factor is your gross profit divided by your gross loss — the total dollars your winners made against the total dollars your losers cost.
3 min read
GlossaryMetricsWin rate
Win rate is the share of your closed trades that finished in profit, expressed as a percentage.
3 min read
GlossaryMetricsAverage win / average loss
The payoff ratio: your mean profit per winning trade divided by your mean loss per losing trade, measuring how much winners outsize losers.
3 min read
GlossaryMetricsSharpe ratio
The Sharpe ratio measures risk-adjusted return: your average excess return over the risk-free rate divided by the volatility of your returns.
3 min read
MetricsRiskMaximum Adverse Excursion (MAE)
The worst unrealized loss a trade survived — and what your MAE distribution says about whether stops are doing real work.
3 min read
MetricsPlaybookMaximum Continuation Excursion (MCE)
What did the market do after you closed? MCE measures the move you missed — and reveals whether your exit was on time or premature.
6 min read
MetricsPlaybookMaximum Favorable Excursion (MFE)
The best unrealized profit a trade reached before you closed it — and what the gap to realized P&L tells you about exits.
4 min read
MetricsFundamentalsReading MFE, MAE, and MCE
Three numbers describe every closed trade: the best it got, the worst it threatened, and what it did after you exited. Together they tell you whether your exit was structural or lucky.
3 min read