Hey guys, I've been using your tools for several years now and I have to say thanks for making this such a good product! I'm looking forward to the multi-core support!! :-)
I ran across something in the performance review tab that I haven't seen before and was wondering if this is an bug or a user training issue.
Basically, how can you have avg positive profit of 11% (in percent) while the avg profit (in dollars) is negative?
Thanks!
-Mr BigReturns
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Thanks for the good words Derek. I have an explanation for this phenomenon:
Average profit ($) is simply = net profit $ / number of trades e.g. ($715) divided by 54.
Average profit (%) is calculated differently. Wealth-Lab loops over each position, summing up their net % profit, then divides the sum by the count and subtracts trading costs.
Not sure if it's right or wrong but considering that your wins outnumber the losses by a wide margin, I can imagine a positive number being produced.
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Here's a simple example to demonstrate it. Ignoring commission, assume for Trade 1 you bought 100 shares of a $10 stock and sold it for a 20% profit at $12.00. For trade 2 you bought 1000 shares of another $10 stock and stopped out for a loss at $9.00.
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You can make it work the other way too.
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Thanks Eugene and Cone! It makes sense based on how the items are calculated.
Hey can one of you contact me directly for a question...
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Not really, but you can create a support ticket.
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