The average profit in dollars a trader earns on a winning trade. It measures profitability per successful trade.
Tracking this metric helps traders assess their profitability and refine their strategy. A high average win compared to the average loss indicates a positive risk-reward ratio.
If a trader’s last 20 winning trades earned $2,000 in total, their average dollar win is $2,000 ÷ 20 = $100 per winning trade. They compare this to their average dollar loss to ensure a positive risk-reward ratio.
The average loss in dollars a trader incurs on a losing trade. It reflects the risk exposure per unsuccessful 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.