Avg Return $

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.

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