Avg Win / Avg Loss

When you win, what you typically make versus what you typically lose. This is your real reward-to-risk ratio, not the one you planned.

The average win to average loss ratio divides your average winning trade by your average losing trade. It is your realized payoff: 2.0× means your typical winner is twice your typical loser. Limbix computes it from closed trades only and prints both averages beside the ratio, because a ratio on its own hides how much money is involved.

How it's calculated#

$$\frac{\overline{\text{win}}}{\overline{\text{loss}}} = \frac{\text{Gross profit} \div \text{winning trades}}{\text{Gross loss} \div \text{losing trades}}$$

Average win

Sum of winning trades' P&L ÷ number of winning trades

Average loss

Sum of losing trades' P&L ÷ number of losing trades, as a positive amount

Only closed trades count. Scratch trades at exactly €0 are in neither average.

Worked example#

Ten closed trades after fees:

Avg win / avg loss = €400 ÷ €200 = 2.00×

The Reports ledger shows it as "2.00× (€400 / €200)".

With a 2.00× payoff, you need to win 1 ÷ (1 + 2) = 33.3% of trades to break even. You won 40%, so your trade expectancy is positive: +€60 per trade.

When it shows "—"#

The ratio needs at least one winner and one loser. Open positions are left out of this row, unlike the trade count and win rate, which include them.

What is a good average win to average loss ratio?#

The tooltip's guide: "Target above 1.5x." The ledger paints the ratio green at 1.0× and above, amber below.

A good ratio is the one that beats your win rate. This table shows the break-even pairs:

A scalper at 0.8× with a 65% win rate is profitable. A trend trader at 3.0× with a 22% win rate is not. Read the ratio with win rate, and let profit factor and expectancy give the verdict.

How to improve it#

The ratio moves when your exits change:

1. Hold winners to the target you planned. Closing early shrinks your average win. The mistake detectors flag winners cut short of their target.
2. Exit losers at the stop. A loss that runs past its stop drags the average loss up. Loss Containment shows how often.
3. Keep size steady. Sizing up after a loss makes the next loser bigger. See Risk Consistency.
4. Set a minimum R:R in your playbook. Limbix checks each trade's planned reward against it. See risk parameters.

Where you'll see it#

• Reports: the Avg win / avg loss row in the Overview ledger, and the AVG WIN and AVG LOSS tiles on the Wins vs Losses report. See the Overview tab and breakdowns.
• Playbooks: AVG WINNER and AVG LOSER on each playbook's page, so you can compare setups. See compare playbooks.

Frequently asked questions#

What is a good average win to average loss ratio?#

Limbix's tooltip suggests above 1.5×. The ratio you actually need depends on your win rate: at 50% you need more than 1.0×, at 40% more than 1.5×, at 33% more than 2.0×. Calculate your break-even win rate as 1 ÷ (1 + ratio) and compare it with the win rate you achieve. The gap between the two is your edge.

Is avg win / avg loss the same as risk-reward ratio?#

Not quite. Risk-reward is usually the plan: the distance to your target divided by the distance to your stop, before the trade. Avg win / avg loss is the result: what your closed winners and losers averaged. Limbix tracks both. The planned one is expected R:R on each trade; this page is the realized one across all of them.

Why does Limbix show N/A for average win or average loss?#

Because the range has no closed winning trade or no closed losing trade, so one of the two averages doesn't exist. Limbix shows N/A instead of €0, which would read as a real average. Widen the date range or remove a filter until the range includes at least one closed winner and one closed loser.

Do scratch trades affect average win or average loss?#

No. A trade that closed at exactly €0 after fees is neither a winner nor a loser, so it is left out of both averages. It still counts in your total trade count, which is why it lowers your win rate slightly while leaving this ratio unchanged.