How to read a trader's track record: win rate, realised P&L and drawdown
Start with realised profit and loss, then read win rate alongside the size of wins and losses, then check how deep the drawdowns went. No single number tells you whether a trader is good; together they tell you how they make money and how much pain comes with it.
Realised P&L: did they bank it?
Realised profit and loss counts only trades that were closed. It’s the closest thing to “money actually made”. How it’s worked out matters too: Stock Locker matches sales to earlier purchases in order (first in, first out), and leaves out sales with no visible purchase rather than counting them as profit.
Win rate: only half the story
Win rate is the share of closed trades that made money. On its own it’s easy to game: take profits quickly and let losers run, and your win rate looks wonderful right up until one loss erases months of wins. A high win rate with a few huge losses is a warning, not a strength. Look for win rate weighted by trade size, and for the average win compared with the average loss.
Portfolio value: watch for deposits
A rising balance can mean good trades, or simply more money paid in. Value on its own says little about skill. Read it next to realised P&L, which deposits and withdrawals don’t move.
Drawdown and average hold
Drawdown, the fall from a peak to the next low, shows what following a trader feels like on bad weeks. Average hold time tells you their style: minutes or hours is day trading, weeks or months is swing or position trading. Neither is better, but it should match how you can follow them.
The record has to be real first
None of this matters if the numbers were typed in by the trader. Check first that the record is read from a connected account and that calls were timestamped before the move. How to check if a trader is legit · How Stock Locker works out its figures
Frequently asked questions
What is a good win rate in trading?
There's no single good number. A trader who wins 40% of the time can be very profitable if winners are much bigger than losers, and one who wins 80% can lose money if a few losses wipe out many small gains. Read win rate together with average win, average loss and realised P&L.
What is the difference between realised and unrealised P&L?
Realised P&L is profit or loss on positions that were actually closed. Unrealised P&L is the paper gain or loss on positions still open, which can change or vanish before they're sold.
What is drawdown?
The fall from a portfolio's peak to its lowest point before a new peak. It shows how much a trader's strategy can lose along the way, which matters as much as how much it makes.
This article is general information, not investment advice. Past performance does not guarantee future results, and every trade can lose money.