The average loss in dollars a trader incurs on a losing trade. It reflects the risk exposure per unsuccessful trade.
Monitoring average dollar loss helps traders control their downside risk. If losses are too large relative to wins, a trader may need to adjust their stop-loss strategy or position sizing.
If a trader’s last 20 losing trades resulted in a total loss of $1,800, their average dollar loss is $1,800 ÷ 20 = $90 per losing trade. If their average dollar win is only $70, they need to adjust their strategy.
The average profit in dollars a trader earns on a winning trade. It measures profitability per successful trade.
The percentage of trades that result in a profit.
A measure of profitability, calculated as the ratio of total profits to total losses. A profit factor above 1 indicates a profitable strategy.
The total count of all trades executed within a specified period (usually a month).
The number of calendar days during which trades were placed. Used to evaluate trader consistency and activity.