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Definition
The percentage of your trades that resulted in neither a profit nor a loss (i.e., you broke even).
Formula
BE % = (Number of Breakeven Trades / Total Number of Trades) * 100
Example
Let’s say you made 50 trades over a month:
- 30 trades were profitable
- 5 trades broke even
- 15 trades resulted in a loss
Your BE % would be: (5 / 50) * 100 = 10%
Key Points
- Opportunity Cost: While breakeven trades don’t hurt you financially, they represent a potential opportunity cost and might indicate areas to improve your strategy.
Considerations
- Breakeven Trades: Break-even trades are included in the total trade count when calculating BE %.
