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Lecture 22 Batting Average Win Loss Ratio PDF

Batting average is calculated by dividing the number of profitable trades by the total number of trades and represents the probability a trader is correct. The win/loss ratio is calculated by dividing the average profitable trade by the average unprofitable trade and shows the ratio of gains to losses. The document provides an example of calculating batting average and win/loss ratio based on a trader's historical strategy performance.

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142 views

Lecture 22 Batting Average Win Loss Ratio PDF

Batting average is calculated by dividing the number of profitable trades by the total number of trades and represents the probability a trader is correct. The win/loss ratio is calculated by dividing the average profitable trade by the average unprofitable trade and shows the ratio of gains to losses. The document provides an example of calculating batting average and win/loss ratio based on a trader's historical strategy performance.

Uploaded by

braetto_1x1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lecture 22

Batting Average & Win/Loss Ratio


Batting average: The average probability that a trader is right. Calculation: number
of profitable trades divided by total number of trades during a specific period.

Win/Loss Ratio: The ratio of the average profitable trades over the average
un-profitable trades.

Example:

Based the historical trades you have done for a particular strategy, calculate your
historical batting average and win/loss ratio.

Average return =
Batting average =
Win/loss ratio =

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