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📖 Day 1 · Quiz (Single Choic
Realized Profit/Loss Ratio, this metric allows you to track how many times the Realized Profit/Loss is greater or less than the Realized Loss or vice versa.
The input data for calculating Realized P/L Ratio are the same 2 basic metrics as for calculating Net Realized Profit/Loss: Realized Profit, Realized Loss.
Realized Profit/Loss Ratio is the ratio of coins that were moved with a profit to coins that were moved with a loss, that is, the formula for calculating this ratio is: Realized Profit / Realized Loss.
Interpretation of how the metric works:
1. Values above “1” indicate that Realized Profit prevails over Realized Loss, that is, on average, the majority makes money on the market;
2. Values below “1” indicate that Realized Loss prevails over Realized Profit and the majority of participants have a realized loss.
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