Average Loss is a geometric average of the periods with a loss. It is calculated by compounding the returns for loss periods where rates of return are greater than or equal to 0 and then the monthly average is calculated.
Determine number of gain periods,
Average Gain Return,
If T2 > 0
Otherwise, ALR = N/A
Arithmetic average loss is defined as:
Annualized loss return,
Annualized arithmetic average loss,