Answer Capsule: Profit Factor = Gross Profit / Gross Loss. Above 1.0 is profitable, above 1.5 is solid, above 2.0 is excellent. Calculate your system's profit factor with your win rate and average win/loss sizes.
Profit Factor = Gross Profit / Gross Loss. Above 1.0 is profitable, above 1.5 is solid, above 2.0 is excellent. Calculate your system's profit factor with your win rate and average win/loss sizes.
Track your trading performance like a hedge fund. Calculate profit factor, Sharpe ratio, and expectancy.
Formula: Profit Factor = Total Gross Profit ÷ Total Gross Loss
Example: Won $15,000 total across winning trades, lost $10,000 across losers:
Profit Factor = 15,000 ÷ 10,000 = 1.5
Benchmarks: Profit Factor > 2.0 = Excellent system. 1.5—.0 = Good. 1.0—.5 = Marginal —expenses may wipe you out. < 1.0 = Losing system. Most profitable traders aim for 1.5+ with a win rate above 40%.
Stop guessing. Track profit factor, Sharpe ratio, and drawdown automatically.
Built-in Signal Analytics ← Tracking Guide
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