What this reference covers
The EOU Journal stores some numbers on each trade and derives others when you open charts and insights. This article lists the main performance-related formulas in plain language so you know exactly what each metric means. These definitions match what you see in the EOU app. For position sizing when you enter a trade, see how to calculate position size and related risk articles.
Values carried from the calculator when you save a trade
When you save from the calculator to the journal, the app persists fields such as Risk amount (same idea as risk in dollars: trading capital × risk %), Planned R (net plan R after fees when available), planned profit gross and net, fees, entry, stop, leverage, margin and take-profit rows. Those feed later calculations (for example Planned R appears in execution ratio). Detailed position-sizing rules (stop distance, liquidation on futures, multiple take-profits) are the same ones built into the calculator when you plan a trade.
Result R when you close a trade
Risk amount is the R baseline (what 1R is in currency terms). Result R expresses outcome in multiples of that risk.
- If you close as profit, loss, or breakeven (not "as planned"): Result R = real PnL ÷ risk amount, rounded to two decimals. The sign follows the outcome (profits positive, losses negative).
- If you close as planned: Result R is set equal to Planned R (PnL follows from that).
Planned R can come from the calculator or be updated when closing; if you close as planned and TPs allow, plan R may be recomputed from reward vs risk across levels (same structure as total plan R in the calculator), then rounded to two decimals.
Execution score and classification
Execution metrics compare realized R to what you planned. They are not stored on the row; they are computed when needed.
| Metric | How it is calculated |
|---|---|
| Execution score | Result R ÷ Planned R when the trade is closed, Planned R is finite and greater than zero, and the outcome is not "as planned". If the outcome is "as planned", the score is 1 (because Result R equals Planned R). Otherwise null if it cannot be computed. |
| Execution label | From score: Excellent if score ≥ 1; Positive if score > 0; Negative if score ≤ 0; Pending if no score. |
Cumulative R curve and drawdown (R)
Only closed trades with a finite Result R and a valid exit time enter the series. Trades are ordered by exit time ascending (then tie-breakers), not by entry alone.
| Metric | How it is calculated |
|---|---|
| Cumulative R at step i | Running sum of Result R along that order. Missing or non-finite values count as 0. Points rounded to two decimals. |
| Current drawdown (R) | At the latest point: cumulative R minus the highest cumulative R seen so far on the path (peak). Rounded to two decimals. |
| Maximum drawdown (R) | The minimum over time of (cumulative R minus running peak). Rounded to two decimals. |
| Longest drawdown (trades) | Longest streak of steps where (cumulative R − peak) stays below zero. |
Session and day buckets (UTC)
Strategy Insights bucket trades using entry time in UTC.
| UTC hour (entry) | Session label |
|---|---|
| 0 - 6 | Asia |
| 7 - 8 | Asia-London |
| 9 - 12 | London |
| 13 - 15 | London-New York |
| 16 - 21 | New York |
| 22 - 23 | Late NY |
Day bucket: Monday through Friday use the weekday name; Saturday and Sunday roll into Weekend.
Segment metrics (Trading Insights / Strategy Insights)
For each segment (side, market, risk band, discipline, day, session, setup, etc.), closed trades in that bucket contribute:
| Metric | How it is calculated |
|---|---|
| Trade count | Number of closed trades in the segment. |
| Avg Result R | Average of Result R over closed trades with finite Result R in the segment. |
| Avg execution | Average of execution scores over closed trades where execution score is defined in the segment. |
| Excellent rate | Share of closed trades in the segment whose outcome is "as planned" (expressed as a rate of excellent planned outcomes). |
Risk Intelligence (win rate, R multiples, Kelly)
Risk Intelligence uses closed trades with finite Result R. Wins are trades with Result R > 0; losses with Result R < 0; zero-R trades count in totals where noted but not as wins or losses.
| Metric | How it is calculated |
|---|---|
| Win rate | Wins ÷ count of closed trades with finite Result R (shown as a percentage). |
| Avg win R | Mean Result R over winning trades; null if there are no wins. |
| Avg loss R | Magnitude of mean Result R over losing trades (positive number); null if there are no losses. |
| R:R (win loss ratio) | Avg win R ÷ avg loss R when both sides exist and avg loss R > 0; otherwise null. |
| Kelly (full) | ((R:R × win rate) − (1 − win rate)) ÷ R:R when wins and losses both exist and avg loss R > 0; otherwise null. The raw value may be negative; on screen it may display as zero when clamped. |
| Half / quarter Kelly | Half Kelly = Kelly ÷ 2; quarter Kelly = Kelly ÷ 4 when Kelly is defined. |
The Journal may show extra labels for context (small sample, negative edge, high Kelly reminder). Kelly is educational, not an automatic position-size command.
For intuition on win rate and Kelly, see win rate, loss rate, R:R and Kelly sizing.
Expectancy
Expectancy (mean R per trade) is the average of Result R over the filtered set of closed trades with finite Result R. It matches the usual definition of expectancy in R units used in Strategy Insights and AI summaries.
Frequently asked questions
- Where do these formulas apply?
- They are built into the EOU Journal and Trading Performance views so the numbers on screen match these definitions. When you plan a trade in the calculator, sizing and plan R follow the calculator rules; this article focuses on how performance metrics are computed after trades are logged.
- Why does execution score equal 1 when a trade closes as planned?
- When you close as planned, Result R is set equal to Planned R by definition, so Result R divided by Planned R is 1. That is intentional so planned trades count as full execution quality in that case.
- Are Kelly values a recommendation to size positions?
- No. Kelly in the Journal is an educational statistic. The app may label high values or small samples clearly. Use it to reason about edge, not as automatic position size.
- Which trades go into cumulative R and drawdown?
- Closed trades with a valid exit time and finite Result R, ordered by exit time (not by entry alone). Details match the cumulative R chart in Trading Performance.