Definition
The average length of time you held your trades that broke even before closing them.
Formula
Avg Breakeven Hold Time = (Sum of Hold Times on Breakeven Trades) / (Number of Breakeven Trades)
Example (Intraday)
Let’s say you had the following hold times for your breakeven trades:
- Trade 1: 12 minutes
- Trade 2: 5 minutes
- Trade 3: 18 minutes
- Trade 4: 20 minutes
Your Avg Breakeven Hold Time would be: (12 + 5 + 18 +20) / 4 = 13.75 minutes
Key Points
- Opportunity Cost: Can highlight if you’re spending too much time on trades that ultimately don’t generate any profit.
