Top 5 Most Important Trading Metrics You’re Not Tracking (And Why They’re Killing Your Performance)

Last updated February 4, 2025

Most trading metrics are worthless.

There, I said it.

cartoon about people not wanting to hear the truth

Let's talk about metrics that actually matter...

Not the ones from some dusty finance textbook.

The REAL metrics that tell you if you're crushing it or kidding yourself.

After working with a trading floor full of successful traders, I've identified the five key metrics that separate consistent performers from the rest.

Let's break them down.

1. Actual R (The Truth-Teller)

stock chart diagram demonstrating the difference between actual R and theoretical R

Listen up, because this one's gonna hurt...

Your "theoretical R" is BS.

Yep, suck it up buttercup.

That perfect 3R trade you planned? Means nothing if you only captured 0.5R because you panicked and closed early.

Actual R shows you the cold, hard truth about your trading.


It's simple:
-How much did you actually make?
-Divided by how much you actually risked?

That's your real R.

And when you track this properly?

You might discover your "winning strategy" is really just gambling with extra steps

How Actual R works

Actual R = Actual Profit / Initial Risk Amount

For example, if you risked $100 and made $250, that's a 2.5R trade – regardless of what your target "could have been."

Why It Matters:

  • Shows your real risk-adjusted performance
  • Exposes position management weaknesses
  • Highlights execution problems
  • Reveals your true edge (or lack thereof)

2. MAE/MFE (The Reality Check)

This one's like a mirror for your trading soul...

MAE (Maximum Adverse Excursion) = How far trades go against you
MFE (Maximum Favorable Excursion) = How far trades go in your favor

These metrics expose critical weaknesses in your trading system.

Why does this matter?

Because it exposes your worst habits:

  • Poorly planned entries
  • Lettings losers run too far
  • Cutting winners too early
  • Using stops that are too tight
  • Missing optimal exit points

For example...

If your trades regularly hit -2R before coming back to break even...Your entries probably suck. Badly.

Or if trades consistently go +3R but you only capture +1R...Getting a little greedy, maybe? Hoping for a home run every time?

And leaving serious money on the table.

Pro Tip: Compare your actual exits to MFE to see how much money you're leaving on the table. A significant difference often indicates premature exits or poor trade management.

3. Time-Based Win Rate

"But Daniel, win rate is basic..."

Not like this it ain't.

Most traders just track overall win rate. That's like saying "I win half my trades" and thinking it means something.

Break it down by TIME and suddenly you see:

  • 70% win rate from 9:30-10:30 ET
  • 35% win rate during lunch hours
  • 60% win rate in power hour

Now you've got actionable intel. You can see exactly WHEN your edge exists... And more importantly, when it doesn't.

Common Time-Based Patterns

  • Opening hour advantage
  • Opening minutes madness (anxious traders, not the market)
  • Lunch hour deterioration (low-volume chop-fest)
  • Power hour opportunities
  • Day-of-week variations (Manic Mondays? "F--- it" Fridays?)

Track yours, you may be surprised by what you see. Or, maybe you already know, and this will be your motivation to finally do something about it.

4. Position Size to Volatility Ratio

Here's where most traders get murdered...

They use the same position size regardless of volatility.

This often-overlooked metric ensures your position sizing aligns with market conditions. It's crucial for maintaining consistent risk exposure across different market states.

Formula:
Position Size / Average True Range (ATR)

Track this ratio and you might discover:

  • You're oversizing in wild conditions with massive ranges
  • You're under-sizing in trending markets
  • You're getting stopped out because your size is too big for the range you're wanting to trade.

Optimal Ratios

  • High Volatility: Reduce ratio
  • Low Volatility: Increase ratio
  • Always adjust for market conditions

Keep in mind, volatility can change at any time. If a calm day turns violent, you have to be able to step back and adjust your ratio to match.

Tracking this one metric and putting it into practice for your trade plan could save your account. 

5. Psychological State Score

"Wait what? That's not a real metric!"

Oh but it is...

And it might be the most important one.

Rate your mental state before every trade (1-10):

  • How clear is your mind?
  • How strong is your conviction?
  • How calm are you?

After a month, you'll notice something wild...Your best trades often come from your best mental states.

And your worst trades? Usually when you're: 

  • Revenge trading
  • FOMO trading
  • Tilted from losses
  • Overconfident from wins

Practical Implementation

Tracking these metrics manually is challenging. Modern trading journals automate this analysis, providing instant insights into your trading patterns. The key is consistency in tracking and regular review of the data.

Common Patterns to Watch, in Correlation:

  • Correlation between mental state and profitability
  • Exit efficiency drops
  • MAE excess
  • Excessive trade counts

Conclusion

What gets measured gets improved. Start tracking these metrics today. The data doesn't lie, and successful traders use it to their advantage.

Here's the problem though...

Tracking all this manually is a nightmare.

Trust me, I tried.

That's why I put together this guide to the best trading journals that track this automatically.

Because you shouldn't need a PhD in Excel to understand your trading.

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Daniel Larsen

Daniel created epicctrader.com to help new and experienced traders level up. He began trading in 2002, and has spent over a decade trading professionally, for prop firms and clients. When he's not at a computer, you can find him on the ocean, in a canyon, or in the mountains.

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