(also called profitability) is a technical analysis
term used to compare performances of different trading systems or different investments within one system. Note, it is not simply another word for profit
. There are varying definitions for it, some as simple as the expected or average ratio of revenue to cost for a particular investment or trading system or "ratio of the number of winning trades or investments to the total number of trades or investments made, a number ranging from zero to 1. Others can be complex or counter-intuitive.
- Saleability = nProfits/nTrades - 1/(1+aveProfit/aveLoss)
This is computed for each system or investment being compared over the same period long enough to include significant "ups" and "downs". A suitable period is something like the last 5 to 20 years.