Financial Glossary
Profit Factor
Money gained divided by money lost. A value of 2.0 means you win twice what you lose.
Explanation
Sum of gains / sum of losses. Profit Factor > 1.5 indicates robust strategy.
Technical detail
PF measures the gross profit / gross loss ratio of the backtest. There is no published target: read it alongside win rate and drawdown, since a high PF on few trades says little.
See also
Educational content. Not investment advice. Past results do not guarantee future returns.