Avg Losers Hold Time (Average Losing Trade Hold Time)

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.