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How often you beat the benchmark — independent of by how much.
Batting average is the percentage of periods (usually months) in which a portfolio outperformed its benchmark. A batting average of 60% means the portfolio beat the benchmark in 60 out of 100 months. Combined with gain/loss ratio, it tells you whether outperformance is steady or driven by a few lucky months.
BA = (periods Rp > Rb) / total periodsBatting Avg = (months Rp > Rb) / total monthsA simple count statistic — does not depend on magnitude. A portfolio that beats by 0.01% counts the same as one that beats by 10%.
Batting average alone is misleading. A strategy with 70% batting average that gives back all gains in one bad month is worse than a 55% batting average with consistent moderate wins. Always pair batting average with gain/loss ratio or profit factor to see the full picture.
Over 36 months, your portfolio outperformed the benchmark in 22 months and underperformed in 14.
Batting Avg = 22/36 = 61%
For active managers, batting averages above 55% are competent, above 60% are strong, above 65% are exceptional. Long-run averages above 70% are virtually impossible to sustain — they almost always reflect a short sample or look-ahead bias.
Information Ratio · Win Rate · Gain/Loss Ratio · Capture Ratio (Up/Down)
55–60% is competent. 60–65% is strong. Above 65% sustained over decades is exceptional.
Batting average compares to a benchmark; win rate compares to zero (any positive return is a "win"). They are mathematically the same idea applied to different reference points.
Yes — trend-following typically has batting average below 50% but a high gain/loss ratio. Few wins, big magnitudes.
Yes — in the timing section of the metrics panel.
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