Definition
The total loss incurred by your losing trades over a specified period.

Formula
Return on Losers = Sum of (Losses on Losing Trades)

Example
Using the same trade history as the previous example:

• Trade 1: Profit of $350
• Trade 2: Loss of $100
• Trade 3: Profit of $150
• Trade 4: Profit of $80
• Trade 5: Loss of $50

Your Return on Losers would be: -$100 + -$50 = -$150

Key Points

• Loss Analysis: Helps you understand the magnitude of your losses and identify areas where your strategy might be vulnerable.

Considerations

• Risk Management: This stat should be considered alongside your “Return on Winners” to evaluate your overall risk-reward profile.