Tag
#strategy-metrics
4 articles
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Average Trade Profit, Explained: Per-Trade Economics and Why Averages Mislead
Average trade profit is total net result divided by number of trades. It is the per-trade economics of a strategy, and it is fragile whenever a few outcomes dominate the total.
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Best and Worst Month Analysis: What Extreme Months Reveal About Risk
Best month and worst month are the largest single-month gain and loss in a strategy's history. They expose the tails that averages and volatility figures quietly smooth away.
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What Is Profit Factor? Gross Profit Over Gross Loss, Explained
Profit factor is total gross profit from winning trades divided by total gross loss from losing trades. It shows how many rupees a strategy won per rupee it lost.
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Win Rate in Investing: Why a High Hit Rate Can Still Lose Money
Win rate is the share of trades or positions that ended in profit. It is easy to read and easy to misread, because it says nothing about how large the wins and losses were.
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