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Performance Metrics5

Profit factor

Profit factor divides everything you won by everything you lost. Above 1.0 means net positive overall; it is a quick health check that win rate alone cannot give.

Metric insight
1.8Profit factor$1.80 won for every $1.00 lost

Profit factor weighs the size of wins and losses, not just their count — which is exactly the blind spot of win rate.

Concept

A fast health check

Above 1.0 the system is net positive; the higher the number, the more room for error. But a profit factor built on a handful of trades is fragile — trust it more as the sample grows.

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Check your understanding

1.What does a profit factor of 1.0 mean?

2.Why can a high profit factor still be misleading?

Apply this to your own trading

What is your profit factor over your last 50 trades, and is the sample big enough to trust it?

 

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Profit factor — Performance Metrics · Map.Trade