Labor Day Sale — Up To 50% Off
Definition
The largest amount of profit you made on a single closed trade.
Example
Imagine you have the following trade history for a week:
- Trade 1: Profit of $100
- Trade 2: Profit of $350
- Trade 3: Profit of $50
- Trade 4: Loss of $120
In this scenario, your Biggest Profit $ would be $350 (from Trade 2).
Key Points
- Understanding Outliers: Helps you recognize particularly successful trades and potentially analyze what contributed to their success.
- Risk vs. Reward: Can be compared with your “Biggest Loss $” to assess the risk-reward profile of your trades.
Considerations
- Only Closed Trades: Only trades where the position has been fully exited are included in this calculation.
- Executions vs. Trades: Profits on individual executions within a strategy are not considered separate trades. The total profit or loss of the entire trade is used.
