average loss

How much you lose on a normal losing trade: add up all the losses and share them out evenly across the losing trades.

The fuller meaning

The mean loss per losing trade, usually measured in R. With average win and win rate it sets expectancy and the breakeven win rate; a method can win most of the time and still lose money if the average loss dwarfs the average win. Costs and slippage enlarge it.

average loss.

average loss

The fuller meaning

Related words