Average Exit Price

The average exit price is the weighted average price at which a total position is closed. When a trader scales out of a position, they execute multiple trades at different prices.

The average exit price provides a single, clear metric to evaluate the overall performance of the exit strategy. It is calculated by dividing the total value received from all exit trades by the total number of units sold.

This metric is essential for comparing the effectiveness of different profit taking strategies and refining future trading plans. By understanding the average exit price, a trader can better assess whether their strategy successfully captured the intended move.

It helps in moving beyond anecdotal evidence to objective performance analysis.