Can average % profit be positive while average \$ profit is negative?
Author: BigReturns
Creation Date: 2/7/2012 8:47 PM

#### BigReturns

#1
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

#### Eugene

#2
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.

#### Cone

#3
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.

CODE:
You can make it work the other way too.

#### BigReturns

#4
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...

#### Cone

#5
Not really, but you can create a support ticket.
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