Definition
The total profit or loss generated from your long trades over a specified period.
Formula
Return $ on Long = Sum of (Profit or Loss on Long Trades)
Example
Imagine you have the following trade history for a week, with the side indicated:
- Trade 1: Profit of $100 (Long)
- Trade 2: Loss of $50 (Short)
- Trade 3: Profit of $80 (Long)
- Trade 4: Profit of $30 (Short)
- Trade 5: Loss of $75 (Long)
Your Return $ on Long would be: $100 + $80 – $75 = $105
Key Points
- Directional Performance: Helps evaluate the profitability of your long-biased trades specifically.
- Strategy Refinement: Can indicate if adjustments are needed to your long trading strategies.
Considerations
- Overall Context: It’s important to compare this to your “Return $ on Short” to get a complete picture of performance by trade direction.
