I've come up with a measurement system to gauge the consistency and profitability of a trader. I'm not sure if anyone has ever done this this way.

There is something called a profit factor that compares a trader's overall $ gain to their overall $ loss but that doesn't mean much to a beginning trader as one huge gain/loss could account for the majority of his or her P/L. With a profit factor, anything over a 1.0 means you are profitable.

 

It works like this, my average $ gain is $15.17 and my average $ loss is $26.48 so my overall reward/risk is 0.57:1

My winning percentage is 31.48% so my losing percentage is 68.52%

Basically you multiply 0.57 by 31.48 which = 17.94 and you multiply 1 by 68.52 which is obviously 68.52.

Add 17.94 + 68.52 which = 86.46

Then you would divide 17.94 by 86.46 and get .207 which is your profitability rating (which is pretty shitty)

Anything over a .50 means you/your edge is consistently profitable. If you have uploaded all of your trades, you can look at your Profitly statistics to see where you stand.

 

On a good note, my YTD consistency rating is 0.442 for shorting so I'm just a couple good trades away from being a consistently profitable short seller!