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Definition
The total profit generated by your winning trades over a specified period.
Formula
Return on Winners = Sum of (Profits on Winning Trades)
Example
Imagine you have the following trade history for a month:
- 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 Winners would be: $350 + $150 + $80 = $580
Key Points
- Winning Strategy Assessment: Helps evaluate how effectively your strategy generates profits when it results in successful trades.
Considerations
- Doesn’t Account for Losses: It’s important to consider this stat alongside “Return on Losers” to get a complete picture of your trading performance.
