Profit factor
Gross profit divided by gross loss — how many dollars you make per dollar lost.
A profit factor above 1.0 means a system is net profitable; 1.5–2.0 is generally healthy, and very high values on a small sample usually signal overfitting rather than genius. It's a quick read on the quality of an edge across all trades.
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Expectancy, profit factor, R — measure what matters.
Related terms
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