The Avg Win/Loss metric in TraderLog is a ratio that compares the average size of your winning trades to the average size of your losing trades. In simple terms, it shows you whether you’re making more when you win or losing more when you don’t.
A higher ratio means your winning trades are, on average, larger than your losing trades—always a good sign! A lower ratio, on the other hand, could mean your losses are bigger than your wins, which might need some attention.
| How It Helps | Limitations |
|---|---|
| Shows if your wins outweigh your losses, helping you fine-tune your risk management strategy. | Doesn’t factor in the frequency of trades—you could have a high ratio but very few winning trades. |
| Offers a clear, visual representation of your average win/loss sizes, making it easy to spot patterns. | It only shows averages, so it won’t reflect outliers or trades that significantly skew results. |
| Keeps track of performance over time, allowing you to adjust your strategy as your ratio changes. | A high Avg Win/Loss ratio doesn’t guarantee overall profitability—you could still be losing money if your win rate is low. |
How is the Avg Win/Loss Ratio Calculated?
The ratio is calculated using the following formulas:
- Average Win = Total Profit from Winning Trades ÷ Number of Winning Trades
- Average Loss = Total Loss from Losing Trades ÷ Number of Losing Trades
- Avg Win/Loss Ratio = Average Win ÷ Average Loss
This gives you a clear picture of how much you’re winning in comparison to how much you’re losing.
Example 1
- You have made 10 trades, 6 of which were profitable.
- Total profit from winning trades = $1,200
- Total loss from losing trades = $600
- Number of winning trades = 6
- Number of losing trades = 4
Average Win = $1,200 ÷ 6 = $200
Average Loss = $600 ÷ 4 = $150
Avg Win/Loss Ratio = $200 ÷ $150 = 1.33
In this case, for every dollar you lose, you win $1.33, which shows a positive performance.
Example 2
- You made 8 trades, with 3 being profitable.
- Total profit from winning trades = $450
- Total loss from losing trades = $1,000
- Number of winning trades = 3
- Number of losing trades = 5
Average Win = $450 ÷ 3 = $150
Average Loss = $1,000 ÷ 5 = $200
Avg Win/Loss Ratio = $150 ÷ $200 = 0.75
Here, you’re losing $1.00 for every $0.75 you win, indicating that your losses are outweighing your wins.
The Avg Win/Loss Metric in TraderLog
Within TraderLog, the “Avg Win/Loss” metric appears in both the dashboard and journal pages, offering a clear and easy-to-understand visual representation. The window displays the average win and average loss values as well as a color-coded bar.
- Green Bar: Represents the size of the average win.
- Red Bar: Represents the size of the average loss.
The bar’s width remains constant, but the split between green and red will vary based on the relative size of your average wins versus your average losses. If your average win is larger, you’ll see more green. If your average loss is larger, more of the bar will be red.
For example, if your average win is $200 and your average loss is $100, you’ll see a bar that’s two-thirds green and one-third red. This visual cue helps you quickly grasp whether you’re making more than you’re losing on your trades.
