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.
