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Performance Metric
Win Rate
Win Rate (Hit Rate)
Definition
The percentage of time periods (months) where the portfolio had positive returns. A higher win rate indicates more consistent positive performance.
Formula
Number of Positive Months / Total Months
Good
> 60%
Bad
< 40%
Example
If out of 120 months, 78 had positive returns, the win rate is 78/120 = 65%. This means the portfolio was profitable in 65% of all months.