A measure of profitability, calculated as the ratio of total profits to total losses. A profit factor above 1 indicates a profitable strategy.
Profit factor helps traders assess the overall performance of their strategy. A profit factor below 1 means they are losing money over time, while a higher profit factor (e.g., 2.0) means they make $2 for every $1 lost.
If a trader’s total profits over a month are $10,000 and their total losses are $5,000, their profit factor is 10,000 ÷ 5,000 = 2.0, indicating a strong trading strategy.
The average profit in dollars a trader earns on a winning trade. It measures profitability per successful trade.
The average loss in dollars a trader incurs on a losing trade. It reflects the risk exposure per unsuccessful trade.
The percentage of trades that result in a profit.
The total count of all trades executed within a specified period (usually a month).
The number of calendar days during which trades were placed. Used to evaluate trader consistency and activity.