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General TradingP
Payoff Ratio
The ratio of average winning trade size to average losing trade size. A payoff ratio above 1.0 means winning trades are larger on average than losing trades, a key metric for evaluating trading performance.
Example
“A trader's average winner is $600 and average loser is $300, giving a payoff ratio of 2.0 — meaning each win is twice the size of each loss.”