Are Breakeven Trades Considered A Loss For Stats | Forex Factory

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Are Breakeven Trades Considered A Loss For Stats

  • #1
  • First Post: Jan 21, 2017 8:01pm Jan 21, 2017 8:01pm
Hello,

My strategy includes breakeven (cost of commission). Do you consider this breakeven as a loss in the loss column for your win-to-loss, expectancy metrics calculations, etc? Or do you not include breakeven trades as part of your total number of trades and just subtract from your total P/L?

Thank you
  • #2
  • Jan 22, 2017 1:31am Jan 22, 2017 1:31am
if your b/e trades cost you commission, of couse you include it in your expectancy calc. otherwise, you're delusional about the loss
  • #3
  • Jan 23, 2017 3:26pm Jan 23, 2017 3:26pm
Quoting hilmy83
if your b/e trades cost you commission, of couse you include it in your expectancy calc. otherwise, you're delusional about the loss
Thank you hilmy83,

I understand now. Yes, my b/e trades cost me commission. Should I consider this as an actual trade loss and include in the Loss column? Should this Loss (from a B/E trade be included in the Loss Ratio)?

Thank you,
  • #4
  • Jan 24, 2017 7:33am Jan 24, 2017 7:33am
I replied to this very question for you in this thread: http://www.forexfactory.com/showthread.php?t=633674
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  • #5
  • Feb 1, 2017 6:37am Feb 1, 2017 6:37am
As a rule of thumb, you should always include the commissions in your stats. Otherwise, you are being unrealistic about your strategy. And the reason for that is that commissions take away between 20 and 60 % of the profit of the vast majority of profitable trading strategies. You can't neglect that!

So, yes, you must say that you are not "breaking even", you are losing that trades.
  • #6
  • Feb 1, 2017 7:19am Feb 1, 2017 7:19am
Quoting pauljherrera
As a rule of thumb, you should always include the commissions in your stats. Otherwise, you are being unrealistic about your strategy. And the reason for that is that commissions take away between 20 and 60 % of the profit of the vast majority of profitable trading strategies. You can't neglect that! So, yes, you must say that you are not "breaking even", you are losing that trades.
Thank you pauljherrera,

You are correct. I now count breakeven trades that results in a lost (due to commission fee) as a LOSS in the loss column of my spreadsheet.

I would like my back testing and journal data collection to be as realistic as possible for when I go live with real money.

Thank you.
  • #7
  • Last Post: Feb 1, 2017 10:23pm Feb 1, 2017 10:23pm
It really depends on how you see it and why was there a breakeven trade to begin with. For me, there are two possible scenarios for breakeven to occur.

1) I move my SL to Breakeven +2 pips to cover the commission
2) I exit at breakeven price because the price hasn't moved much since my entry.

In my case, knowing how many breakevens trades are equally as important as knowing how many wins and losses.
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