Question

How to calculate ratios from trade and profit and loss account?

Answer 1

Answer:

The profit/loss ratio acts like a scorecard for an active trader whose primary motive is to maximize trading gains. The profit/loss ratio is the average profit on winning trades divided by the average loss on losing trades over a specified time period.

Profit and Loss Ratio=

NWT

Total Gain

÷

NLT

Total Loss

where:

NWT=number of winning trades

NLT=number of losing trades

hope it helps..