In cricket, this would be similar to calculating the average number of runs scored by a batsman. For traders, it represents the average profit or loss generated per trade.
The Avg Win Size refers to the average profit in amount terms & % terms you make on your winning trades. Similarly, average loss size refers to the average loss in amount terms & % terms you incur on your losing trades.
This metric provides insights into the consistency and magnitude of wins and losses. A higher loss size indicates poor risk management. For success, it is ideal to have a higher Avg Win Size and lower Avg Loss Size.
You can also evaluate your segment-wise, sector wise and market cap wise win/ loss size by clicking on the Average win/loss size widget under the Trade Analytics section.