Your disposition ratio tells you how long you spend in winning trades versus losing trades. It is calculated as:
Average Time in Winning Trades / Average Time in Losing Trades
For example, if your winning trades average 15 minutes and your losing trades average 30 minutes, then your disposition ratio will be 0.5.
A disposition ratio below 1.00 indicates that you are spending less time in winning trades than in losing trades. It can indicate that winning trades could be getting closed out too quickly, or losing trades could be getting left open too long.
The “Disposition over time” chart shows how your disposition ratio changed over time, as well as how successful you have been at reaching your target Disposition.
The “Average time in trades by winners and losers” splits out the winning trade times from the losing trade times.
Use this chart if there is large variations in your “Disposition over time” chart, to understand if the difference is due to staying in losing trades for a very long time,or because of closing a bunch of winning trades really quickly.
If you have patterns of behaviour where there is a big change in the disposition, look to see if it is related to different market conditions, as it may be that a more stressful market will cause you to be less disciplined closing losing trades and/or staying in winning trades for long enough.