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Profit Factor, MAE & MFE: Reading Your Own Trades

intermediate·6 min read·Tier 3

Three journal metrics that turn a pile of closed trades into a clear story about your entries, exits, and stop placement.

Once you've logged a few dozen trades, the journal stops being a diary and becomes a dataset. Three metrics do most of the heavy lifting when you mine it: profit factor tells you whether the whole operation makes money, and MAE and MFE tell you whether your stops and targets are in the right place. Together they answer the two questions every trader eventually asks — "am I profitable?" and "where am I leaving money on the table?"

Profit factor: the one-glance health check

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