If you can't measure it, you can't improve it. But with dozens of possible metrics, which ones actually matter? This guide covers the 50 most important trading metrics across 8 categories. Each metric includes what it measures, how to calculate it, what a healthy range looks like, and what to do when it's out of range. ## Category 1: Core P&L Metrics ### 1. Net P&L **What it measures**: Your total profit or loss after all costs. **Formula**: `Σ(Realized PnL - Fees - Funding)` **Healthy**: Positive over any 30-day window. **Action**: If negative, don't trade more — analyze WHY. ### 2. Gross P&L **What it measures**: Profit/loss before deducting fees and funding. **Formula**: `Σ Realized PnL` **Why it matters**: If gross is positive but net is negative, your edge exists — fees are killing it. ### 3. Fee Ratio **What it measures**: What percentage of your gross profits go to trading costs. **Formula**: `Total Fees / Total Gross Profit` **Healthy**: Below 20%. **Danger**: Above 40%. **Action**: If above 30%, reduce trade frequency or switch to limit orders. ### 4. Fee-Adjusted Expectancy **What it measures**: Your average profit per trade after all costs. **Formula**: `Net P&L / Number of Trades` **Healthy**: Consistently positive. **Action**: If negative, stop trading this strategy until you identify the problem. ### 5. Funding Fee Drag **What it measures**: How much funding fees (on perpetual futures) cost you. **Formula**: `Σ Funding Fees / Net P&L` **Healthy**: Below 10% of net P&L. **Action**: If significant, reduce hold times or trade during favorable funding periods. ## Category 2: Win/Loss Metrics ### 6. Win Rate **What it measures**: Percentage of trades that were profitable. **Formula**: `Winning Trades / Total Trades` **Healthy**: Depends on your R:R — 30% with 3:1 R:R is great, 55% with 1:1 is average. **Action**: Don't optimize for win rate alone — combine with average win/loss size. ### 7. Average Win **What it measures**: Mean profit on winning