5 backtest metrics that actually matter (and 2 that don't)

Not all metrics are created equal. Some look impressive but tell you almost nothing. Here's where to actually look.

The 5 that matter

1. Expectancy — the average you expect to make per trade. Positive and stable is the goal.
2. Max drawdown — can you stomach the worst stretch without quitting?
3. Risk-reward ratio — how much you risk versus what you aim to make.
4. Profit factor — gross profit divided by gross loss; above 1.5 is healthy.
5. Number of trades — a tiny sample proves nothing. More data, more confidence.

The 2 that fool people

Win rate alone — you can win 90% of the time and still go broke if losses are huge. And total return without drawdown context — a 300% return means little if you'd have had to survive a 70% drawdown to get it.

The takeaway

Judge a strategy on the full picture, not a single flashy number. Invite's analytics surface all of these automatically so you never trade on a vanity metric.