Profit Factor Calculator
Profit Factor from Totals
Profit Factor from Trade Data
Formula
Profit Factor = Gross Profit / Gross Loss
Frequently Asked Questions
What is profit factor?
Profit factor is the ratio of gross profits to gross losses. A profit factor above 1.0 means the system is profitable. A value of 2.0 means you earn $2 for every $1 lost.
What is a good profit factor?
A profit factor above 1.5 is generally considered good, above 2.0 is excellent. Below 1.0 means the trading system loses money. Values between 1.0 and 1.5 are marginal.
How does profit factor relate to win rate?
Profit factor combines both win rate and the average win/loss size. You can have a low win rate but high profit factor if your average win is much larger than your average loss.
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