FSP Academy
Glossary

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.

Learn it properly
Performance Metrics course →
Expectancy, profit factor, R: measure what matters.

Put it into practice. Log a trade, see it in your stats.

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