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Max win / loss streak

The max streak is the longest run of winning, or losing, trades that followed one another without a break. It is as much a behavioural statistic as a performance one: it does not say how much you lost, it says how many times in a row you had to take it with no proof the system still worked.

The formula

Longest run of consecutive winners / losers.

How to read it

Your psychological resilience. A long losing streak is where discipline cracks.

A losing streak is not an anomaly, it is a statistical certainty. With a 40% win rate, a run of six losers is close to guaranteed over a hundred trades. Knowing your past max streak tells you what your plan has to absorb, and what your capital has to get through without you changing the rules mid-run.

The classic mistake

Reading a losing streak as proof the system is broken. That is the exact moment most traders switch method, and lose the one thing that was producing a result: repetition. A streak is judged against what your win rate makes likely, not against how it feels.

To go deeper on this : read the full guide. Every term is gathered in the glossary.