Many traders still use Win Rate (WR) as a success indicator.

But WR can be 60% while your balance is going down -- meaning your average losses are larger than your wins.

BAWR (Balance Adjusted Win Rate) is a new hybrid metric I designed to fix that problem.

It combines your actual balance performance with trade frequency, giving you a normalized score from 0 to 100:

50% = breakeven

50% = profitable system

<50% = losing system

The result? A single clean number that tells whether your trading approach truly makes money.

Formula:

BAWR(λ) = clip( 50 + 50 * ((Bn - B0) / B0) - λ * |W/(W+L) - 0.5| * 100 , 0 , 100 )

Example:

Starting balance = 1000$

After 10 trades: balance = 899$, 6 wins, 4 losses

BAWR(λ=0) = 50 + 50 × (-0.101) = 44.95%

✅ 60% win rate

❌ But BAWR = 44.95% → system still losing overall.

Author: SteveMonsway (pseudonym)

GitHub: github.com/SteveMonsway

License: Custom CC BY-NC 4.0 -- Commercial Permission Required

(Personal use allowed with attribution; commercial/production use requires author's permission.)