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# 4. Understanding Your Backtest Results

When EdgeLab runs a backtest, the results appear automatically in the right-hand **Metrics** panel. Here is what each number means and what to look for.
### The main metrics
**Win Rate** The percentage of trades that closed profitably. A win rate above 40% is shown in green; below 40% in red. Note that win rate alone tells you very little — a strategy with a 35% win rate and a 3R average winner can be highly profitable. Always read win rate alongside expectancy.
**Expectancy** The average result per trade expressed in R (multiples of your risk). An expectancy of +0.25R means that on average, for every $100 you risk, you expect to make $25. Positive expectancy (shown in green) is required for a strategy to be worth deploying. Negative expectancy means the strategy loses money over time regardless of position sizing.
**Max Drawdown** The largest peak-to-trough loss in the backtest period, expressed as a percentage of the account. This tells you the worst losing streak the strategy experienced historically. A strategy might show strong overall returns but have a drawdown that would be psychologically difficult or account-threatening to sit through.
**Total Return** The cumulative percentage return over the entire backtest period, assuming consistent position sizing. This is shown for context — it is heavily influenced by position size assumptions and should not be compared across strategies unless the sizing method is identical.
**Trades** The total number of trades in the backtest. This matters because statistical significance requires a reasonable sample size. EdgeLab will warn you if a backtest has fewer than 30 trades — results with a small sample are unreliable and should not be the basis for a live deployment decision.
**Sharpe Ratio** A measure of risk-adjusted return. A Sharpe above 1.0 is solid; above 1.5 is strong; above 2.0 is exceptional. A Sharpe below 0 means the strategy loses money. Note that Sharpe can be inflated by strategies with very short holding periods — always read it alongside the equity curve.
### Secondary metrics
Beneath the main grid you will find additional detail:
* **Profit Factor** — Total gross profit divided by total gross loss. Above 1.0 means profitable; above 1.5 is generally good.
* **Avg Win / Avg Loss** — Expressed in R, these show your reward-to-risk ratio in practice. If your average win is 1.2R and average loss is 1.0R, your strategy has a natural edge from the ratio alone.
* **Spread Applied** — The spread cost in pips that was deducted from each trade during the backtest. This makes results more realistic.
* **Outcome Breakdown** — If available, a count of how trades exited (TP hit, SL hit, time exit, etc.)
### The robustness bar
Below the metrics you will see a robustness score expressed as a percentage with a colored bar:
* **Green (60%+)** — The strategy held up well across a range of parameter variations. This is a good sign.
* **Amber (40–60%)** — Moderate robustness. The strategy works but may be sensitive to the exact settings chosen.
* **Red (below 40%)** — The strategy is likely curve-fitted to the specific parameters tested. Treat results with caution and do not deploy without further testing.
### The Download PDF Report button
After a backtest runs, you can download a full PDF report of the results by clicking the button in the Metrics panel. This is useful for saving a record of a research session or sharing results.