Reviewing performance like a fund: the metrics that matter
In this lesson you'll learn
- The handful of metrics professionals track
- How to build a simple monthly report
- What to do with the numbers
The core metrics
| Metric | What it tells you |
|---|---|
| Return (%) | Growth for the period |
| Maximum drawdown (%) | The worst fall from a peak |
| Return ÷ max drawdown | Reward per unit of pain: above 1 per year is solid |
| Expectancy (R) and number of trades | The edge, and how much evidence supports it |
| Profit factor | Gross profit ÷ gross loss: above 1.3 is decent |
| Rule-following rate (%) | Discipline: trades that followed the plan |
A monthly report
- The metrics above, for the month and the year so far.
- Results by setup and by symbol.
- The three best and three worst trades, and what they teach.
- Rule breaks and their cost.
- One decision for next month.
Using the numbers
Look for slow trends, not single months. A falling profit factor over several months may mean the market regime changed; a falling rule-following rate means the problem is you, not the strategy.
Common mistakes
- Tracking return without drawdown.
- Making big changes after one bad month.
- Not measuring discipline.
Check yourself
1. Profit factor is…
2. Return ÷ max drawdown measures…
3. A falling rule-following rate suggests the problem is…
Key takeaways
- Track return, drawdown, expectancy, profit factor and discipline.
- A short monthly report beats occasional guessing.
- React to trends over months, not single bad weeks.
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Education, not advice. Goldman Academy teaches how markets and tools work. Nothing here is a recommendation to buy or sell, and no lesson promises profits. Trading leveraged products carries a high risk of losing money; only trade money you can afford to lose. · Written by Goldman Academy, reviewed by Faisal