The profit-loss ratio results after dividing the winning operations results average by the losing operations results average. This is the formula to calculate the profit-loss ratio:
Profit-Loss Ratio = | Winning Operations Results Average |
Losing Operations Results Average |
For example, if the winning operations average is 65,4€, and the losing operations average is 38,9€, the profit-loss ratio is calculated like this:
Ratio Profit-Loss= | 65,4 € |
38,9 € |
Ratio Profit-Loss = 1,7