Formulas for Avg Profit % and Avg Loss % in backtest report

[didrip]

Hello everybody

I'm sure it's simple but in the backtest report, I understand how is calculated the Avg Profit/Loss % but I don't retrieve the formulas for Avg Profit % and Avg Loss % ?

Thanks in advance for your help
Best regards

[bursaware]

Hi, you may refer to this topic Expectancy is Avg. Profit/Loss %

[mradtke]

To calculate the Avg % Profit you simply find the sum of the % Profit from all of the winning trades and divide by the number of winning trades.

[didrip]

@mradtke

If I understand you, "the sum of the % Profit from all of the winning trades" = (Total Profit of Winners / Initial Capital ) * 100
So ((44744,48 / 20000)*100 ) = 223.7224 and divide by the number of winning trades (=294) = 0,76
and not 14.31
Where is my mistake or misunderstood ?

Thanks in advance for your help
Best regards

[mradtke]

That's incorrect, and was explained in the other post that @bursaware referred you to. You need to find the % profit for each individual winning trade, sum those values, and divide by the number of winning trades. Note that the % Profit for a trade is not related to your portfolio equity, but only to the $ profit and $ value of the trade itself.

You can check this very easily by copying a trade list and pasting into Excel. Sort from highest to lowest % P/L. Select all the positive % P/L values. Without even writing a formula, Excel will tell you the average value for the selected cells.