Average Winner / Average Loser
Average winner is the mean profit of all winning trades; average loser is the mean loss of all losing trades. Their ratio, alongside win rate, determines overall expectancy.
Formula
Why it matters for traders
Many traders focus on win rate alone, ignoring whether winners are larger than losers. Average winner and loser together reveal whether your risk-reward is sustainable. A strategy with 70% win rate but average winner half the size of average loser has negative expectancy.
How Tradapt tracks this
Tradapt shows average winner and average loser in Analytics. A declining average winner relative to average loser is an early warning sign of deteriorating edge quality.
Track this free in TradaptFrequently asked questions
What ratio of average winner to average loser is needed to be profitable?
If your win rate is 50%, your average winner must be larger than your average loser to profit. At 40% win rate, your average winner must be 1.5x your average loser. The exact minimum ratio depends on your win rate.