Return $ on Short

Definition
The total profit or loss generated from your short trades over a specified period.

Formula
Return $ on Short = Sum of (Profit or Loss on Short Trades)

Example
Using the same trade history as the previous example:

• 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 Short would be: -$50 + $30 = -$20

Key Points

• Shorting Performance: Helps evaluate the profitability of your short-selling trades specifically.
• Strategy Refinement: Can indicate if adjustments are needed to your short-selling strategies.

Considerations

• Overall Context: It’s important to compare this to your “Return $ on Long” to get a complete picture of performance by trade direction.