Avg Winning Hold Time (Average Winning Trade Hold Time)
Definition
The average length of time you held your winning trades before closing them.
Formula
Avg Winning Hold Time = (Sum of Hold Times on Winning Trades) / (Number of Winning Trades)
Example (Intraday)
Let’s say you had the following hold times for your winning trades:
- Trade 1: 15 minutes
- Trade 2: 30 minutes
- Trade 3: 8 minutes
- Trade 4: 22 minutes
Your Avg Winning Hold Time would be: (15 + 30 + 8 + 22) / 4 = 18.75 minutes
Key Points
- Strategy Alignment: Helps you understand if your winning trades align with your intended time horizon for intraday trading.