Avg Return $

Definition
The average dollar amount of profit or loss generated per trade over a specified period.

Formula
Avg Return $ = (Sum of Returns on All Trades) / (Total Number of Trades)

Example
Let’s say you made the following trades over a week:

• Trade 1: Profit of $200
• Trade 2: Loss of $75
• Trade 3: Profit of $150
• Trade 4: Loss of $100
• Trade 5: Profit of $50

Your Avg Return $ would be: ($200 – $75 + $150 – $100 + $50) / 5  =  $60

Key Points

• Strategy Performance: Provides an overall picture of the typical profit or loss you generate per trade.