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Trading glossary · risk
average win
How much you make on a normal winning trade: add up all the wins and share them out evenly across the winning trades.
The fuller meaning
The mean gain per winning trade, usually in R. Win rate alone says little: the ratio of average win to average loss sets the breakeven win rate, 1 / (1 + R). Cutting winners early, a common effect of fear and loss aversion, shrinks it.
average win.
Related words
1% rule · ATR stop · average loss · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve · exposure