if you make 2 trades, one you win 3 $ and the next one you win 1$, the profit factor is (3+1) : 2 = 2
if you make 2 trades, one you win 3 $ and the next one you win 1$, the profit factor is (3+1) : 2 = 2
This is not correct.
In your example profit factor can not be calculated because Gross Loss value is equal to 0.
As stated above, PF is Gross Profit/ Gross Loss. So, if you make 3 trades with the following results: +5$, -5$, +10$. PF will be = 15/5=3.0;
This is not correct.
In your example profit factor can not be calculated because Gross Loss value is equal to 0.
As stated above, PF is Gross Profit/ Gross Loss. So, if you make 3 trades with the following results: +5$, -5$, +10$. PF will be = 15/5=3.0;
Why 15
Because Gross Profit is the summ of all PROFIT trades and gross loss is the summ of all LOSS trades.
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How the profit factor is calculated?????