How do you measure trading performance beyond just P&L?

How much you risk vs how much you aim to gain.

Aim for at least 1:2 (risk $100 to make $200). This lets you be wrong more often and still profit.

Average profit per trade.

Formula: (Win Rate × Average Win) - (Loss Rate × Average Loss)

Positive expectancy = your edge. If it's negative, you will lose money long-term.

Biggest peak-to-trough drop in your account.

Example: Account drops from $10k to $7k = 30% drawdown.

Lower is better. Controls risk of ruin.

Risk-adjusted return. Measures return per unit of risk (volatility).

Higher number = better performance for the risk taken.

Total profit from winning trades ÷ Total loss from losing trades.

Above 1.5 is solid.

Summary: Track these monthly in a trading journal. A good trader shows positive expectancy, controlled drawdown, and consistent risk management, not just big P&L numbers that can disappear fast.

Focus on process and risk. Profits follow.

Growth

Makes sense to track performance so you don't deceive yourself

That's true