From Wikipedia, the free encyclopedia

Profitability (also called salability or saleability) is a technical analysis term used to compare performances of different trading systems or different investments within one system. The following definition was published in the journal Technical Analysis of Stocks & Commodities Magazine:^[1]

Profitability = 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.

[edit] References

1. ^ Harris, Michael (September 2002). "Improve Your System With The Profitability Rule". (incomplete excerpt) Technical Analysis of Stocks & Commodities Magazine. 

• Ayaz, Maryam (2007), "Sharia'h and Profits", Revolutionary Islamic Revenue Generating Models

[edit] See also

• Profit
• Rate of return
• Islamic Banking, Finance & Economics by Maryam Ayaz

[edit] External links

• Pricing To Maximize Total Profits