Knowledge center · Validation & statistics
Win Rate (invested days)
Share of the days the strategy was actually long that ended up positive.
Formula
Win rate = positive-return invested days / total invested days
Interpretation
Different from hit rate: this looks at daily P&L while a position was held, not at whether the initiating call was directionally correct over the full 21-day horizon.
What good looks like
Above 50%, ideally with average wins at least as large as average losses (see Sharpe/Sortino for that balance).
What bad looks like
A win rate near or below 50% combined with a low Sharpe suggests small, frequent wins are being wiped out by occasional large losses.
Typical range
48%–54% is typical for daily equity returns even in a genuinely profitable strategy — win rate alone is a weak signal without magnitude context.
How OmniSignal uses it
Shown alongside average holding period and time invested so a strategy that "wins often but small, loses rarely but big" doesn't look better than it is.
References
Standard trading-strategy diagnostics
Related concepts