Most traders track two things: their P&L and their win rate. That's like measuring a business by looking only at revenue and closing rate — it misses everything that determines whether the results are sustainable, repeatable, or just luck. Good trading metrics tell you not just what happened, but *why* it happened and whether it's likely to continue. Here's a complete guide to the metrics that matter, organized from basic to advanced. ## Tier 1: Outcome Metrics (What Happened) These are the starting point. Necessary but not sufficient. ### Net P&L **What it is**: Your total profit minus total losses, fees, and funding costs. **Formula**: `Net P&L = Σ(realized PnL) - Σ(fees) - Σ(funding)` **Why it matters**: The ultimate bottom line. But it tells you nothing about risk, consistency, or process quality. **Gotcha**: A positive P&L can mask terrible risk management if you got lucky on a few large trades. ### Win Rate **What it is**: The percentage of trades that closed in profit. **Formula**: `Win Rate = winning trades / total trades` **Why it matters**: Gives a basic sense of accuracy. But win rate alone is misleading — a 90% win rate means nothing if your average loss is 10x your average win. **What "good" looks like**: Depends entirely on your risk/reward profile. Day traders: 45-60%. Trend followers: 30-45% with larger wins. Scalpers: 60-75%. ### Gross P&L **What it is**: Your P&L before fees and funding costs. **Formula**: `Gross P&L = Σ(realized PnL)` **Why it matters**: Shows your raw trading edge before friction. If gross is positive but net is negative, your problem is fees, not strategy. ## Tier 2: Risk-Adjusted Metrics (How Efficiently) These tell you whether your returns are worth the risk you're taking. ### Profit Factor **What it is**: The ratio of gross winning trades to gross losing trades. **Formula**: `Profit Factor = Σ(wins) / |Σ(losses)|` **Why it matters**: Anything above 1.0 means your wins outsize your losses in total. Below 1.0, you're l