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


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?

-Mr BigReturns

profile picture


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.
profile picture


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.

Please log in to see this code.
You can make it work the other way too.
profile picture


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...

profile picture


Not really, but you can create a support ticket.