Performance Metric

Average Win — Definition & Example

Mean profit on winning trades — used alongside average loss to compute expectancy.

Average win is the simple mean of all profitable trades over a period. Comparing it to average loss reveals whether the strategy has the right risk-reward asymmetry. A common retail mistake is letting losers run and cutting winners short, which crushes the average-win-to-average-loss ratio below 1.0 and turns even high-win-rate strategies unprofitable.

Formula

Average Win = Sum of profits on winning trades / Number of winning trades

Example

Across 30 winning trades, total profit was ₹45,000. Average win = 45,000 / 30 = ₹1,500.

Related

Average LossWin RateExpectancyRisk-Reward RatioPremature ExitDisposition Effect

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