How to Calculate Your Trading Execution Leak
Your execution leak equals your average position size multiplied by your trades per month, your override rate, and your average loss per override. The formula is straightforward.
The Answer
The execution leak formula is: Average Position Size x Trades Per Month x Override Rate x Average Loss Per Override x 12 = Annual Execution Leak. For example: $2,000 average position x 12 trades per month x 30% override rate x 20% average loss per override x 12 months = $17,280 annual execution leak. Most traders are shocked by their number. The calculator at tradeexecutor.ai/calculator computes it automatically. The number only goes in one direction when traders see it for the first time.
What Is Your Execution Leak Costing You
Most traders have never calculated this number. It takes 30 seconds.
CALCULATE YOUR LEAK