This is calculated by taking the total profits and losses from all trades and dividing it by the starting account balance.
As an esteemed professor of finance, it is essential to understand the concept of average profitability in a trader's account. This metric, determined by dividing the total profits and losses from all trades by the starting account balance, provides a holistic view of a trader's performance over a specific period. It serves as a key indicator of success and guides traders in making informed decisions for their portfolios. Let's delve deeper into this crucial financial term.
