The Complete Guide to Tracking Your Trading Performance

Stop chasing P&L

Total profit/loss is the worst metric to optimise. It rewards luck, it punishes prudence, and it tells you nothing about whether your edge is real.

The four metrics that matter

1. Sharpe Ratio — returns per unit of volatility. Anything above 1.0 is good; above 2.0 is rare.
2. Maximum Drawdown — the worst peak-to-trough loss. If this exceeds 25%, you're likely over-levered.
3. Profit Factor — gross profits ÷ gross losses. Below 1.2 is fragile; above 1.5 is robust.
4. Expectancy — average dollar gain per trade. Negative expectancy = stop trading.

Where PipCircle helps

Every connected account on PipCircle automatically computes these four metrics from your broker's trade history. No spreadsheets, no manual logging — just open your account page and read the numbers.