Definition
The percentage of your trades that resulted in a loss.
Formula
Loss % = (Number of Losing 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 Loss % would be: (15 / 50) * 100 = 30%
Key Points
- Risk Assessment: Shows how often your trading strategy generates losing trades.
Considerations
- Breakeven Trades: Break-even trades are included in the total trade count when calculating Loss %.
