Definition
The average length of time you held your losing trades before closing them.
Formula
Avg Losers Hold Time = (Sum of Hold Times on Losing Trades) / (Number of Losing Trades)
Example (Intraday)
Let’s say you had the following hold times for your losing trades:
- Trade 1: 8 minutes
- Trade 2: 22 minutes
- Trade 3: 17 minutes
- Trade 4: 12 minutes
Your Avg Losers Hold Time would be: (8 + 22 + 17 + 12) / 4 = 14.75 minutes
Key Points
- Risk Management: Can help identify if you are holding onto losing trades for too long, potentially increasing your losses.
