Share of Profitable Positions

A share of profitable positions, or SPP for short, is another indicator introduced by the MarketCheese team, which is used to evaluate the impact of market events.

The SPP shows the share of profitable trading positions out of its total number and is calculated using the formula below:

The SPP is something of a qualitative indicator of efficiency. The higher the SPP is, the more often profitable trades can be made.

Notes

The SPP, unlike the average profitability, does not take into account the amount of profits and losses. There is a possibility that the SPP is more than 50%, but the strategy is loss-making as the average loss-making position is larger than the average profitable position.