Average Winner & Average Loser

The average winner is the mean net P&L of your winning trades; the average loser is the mean of your losing trades (a negative number). Their ratio is the payoff ratio, and the gap between them drives expectancy.

Formula

Average winner = mean(net P&L | win)
Average loser = mean(net P&L | loss)   (negative)

Worked example

Winners +$500 and +$300; losers −$200 and −$100.

Average winner	($500 + $300) / 2 = $400
Average loser	(−$200 − $100) / 2 = −$150
Ratio (payoff)	$400 / $150 = 2.67
Result	+$400.00 / −$150.00

Why it matters

Comparing the two shows whether you cut losers and let winners run, or the reverse. A loser larger than your winner is a classic warning sign even with a good win rate.

Common pitfalls

Means are dragged by outliers; check the median and largest win/loss too. A single oversized loss can swamp many small, disciplined ones.

How TradeJournalOS shows it

Shown as average winner and average loser on the dashboard, feeding the payoff ratio and expectancy, with largest win/loss alongside.

Dashboard metric

Preview coming soon

Average Winner & Average Loser as shown on the TradeJournalOS dashboard, computed deterministically from your closed trades.

Create a free account to see average winner & average loser on your own trades.

Related metrics

Payoff Ratio Expectancy Profit Factor

Frequently asked questions

Why is my average loser negative? +

Losses are stored as negative net P&L, so the average loser is a negative dollar figure. Payoff ratio uses its absolute value.

Should winners always be bigger than losers? +

Not necessarily — it depends on your win rate. High-win-rate systems can run smaller winners than losers and still profit, but the gap is worth watching.