Avg P&L

The mean financial result generated by each closed position within the strategy. This metric tells, on average, how much money each trade contributes to (or subtracts from) the account balance.

Exclusions: This calculation is based strictly on realized results and does not account for the floating profits or losses of currently open positions.

Strategic value: This is a vital "viability" metric. For a strategy to be sustainable in live markets, the Avg P&L must remain significantly higher than combined commission paid and estimated slippage. If the Avg P&L is too "thin," the strategy risks being "eaten alive" by transaction costs.

Calculation Formula

The average is determined by dividing the Net P&L by the total volume of completed trades.