Profit factor calculator
Compare gross wins with gross losses.
Calculator
Worked example
A trade log with more losers than winners, where the average winner is larger than the average loser. These are the calculator's default inputs and the result it returns for them.
| Winning trades | 90 trades |
|---|---|
| Average winner | 1.5 R |
| Losing trades | 110 trades |
| Average loser | 1 R |
| Profit factor | 1.23 |
| Net result | +25.00R |
| Expectancy | +0.13R |
Gross profit is 135.0R against 110.0R gross loss.
Questions
- What is profit factor?
- It is gross profit divided by gross loss. A profit factor above 1 means the winners made more than the losers gave back.
- How do I read the result?
- Read profit factor next to net result and expectancy. The same profit factor says much less over a few trades than over hundreds of trades.
- What is a common mistake?
- Leaving costs out of the averages. Include commission and slippage in your winners and losers, or the profit factor will look better than your account.