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Avg $ on Winners (Average Profit on Winning Trades)

Definition
The average dollar amount of profit generated on your winning trades.

Formula
Avg $ on Winners = (Sum of Profits on Winning Trades) / (Number of Winning Trades)

Example
Let’s say you made the following trades:

  • Trade 1: Profit of $400
  • Trade 2: Loss of $100
  • Trade 3: Profit of $150
  • Trade 4: Profit of $250

Your Avg $ on Winners would be: ($400 + $150 + $250) / 3 = $266.67

Key Points

  • Winning Strategy Assessment: Helps you evaluate how much profit your winning trades generate on average.

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