GLOSSARY · RISK & PERFORMANCE
What is Profit Factor?
Profit factor is gross profit divided by gross loss.
Above 1.0 is profitable; 1.5+ is solid; 2.0+ is strong. Like win rate, it needs a large sample to be meaningful.
EXAMPLE
$15,000 gross wins ÷ $10,000 gross losses = profit factor 1.5.
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