Definition
The average dollar amount of loss incurred on your losing trades.

Formula
Avg $ on Losers = (Sum of Losses on Losing Trades) / (Number of Losing Trades)

Example
Let’s say you made the following trades:

• Trade 1: Profit of $200
• Trade 2: Loss of $120
• Trade 3: Loss of $75
• Trade 4: Profit of $180
• Trade 5: Loss of $200

Your Avg $ on Losers would be: ($120 + $75 + $200) / 3 = $131.67

Key Points

• Risk Assessment: Helps you evaluate how much you typically lose on unsuccessful trades, highlighting potential areas for risk management.