Profit Vs Profit factor

newoptionz
646
newoptionz  

Hi Please help

Can anyone explain the difference between profit and profit factor to me. My high profit factor does not have the highest profit in optimizer results, even with now Money management (MM) and only buying 1 lot each time.

Ahmed Soliman
26358
Ahmed Soliman  

Profit factor

cardio:
Hi Please help Can anyone explain the difference between profit and profit factor to me. My high profit factor does not have the highest profit in optimizer results, even with now Money management (MM) and only buying 1 lot each time.

cardio,

The profit factor is the ratio in percentage between the sum of all the win trades (Gross profit) and the sum of all the loss trades (Gross loss).

If the Gross profit = 74253.00 and the Gross loss= -13618.00

Then the Profit factor= (74253.00 /13618.00) = 5.45

newoptionz
646
newoptionz  

busy testing

Thanks

I need to run some checks to test this. Your definition is right. I will run some more over the weekend and get back to you with the results.

newoptionz
646
newoptionz  

in that

It is weird that in that the optimizer gives a pf of 2.13 - then I run the test with the optimizers results and I get a pf of 8.53?

Anyway - let me first test some more.

newoptionz
646
newoptionz  

Thats a great definition!

So, when only trading a fixed lot size, its the number of times you will win to the number of times you will lose. Anything then with a profit factor higher then 2 should be better then gambling.