What is Profit Factor?

Profit Factor is the ratio of your total profits to your total losses. It’s a quick and easy way to see if you’re making more than you’re losing. For instance, if your Profit Factor is 2.0, it means you’re making twice as much as you’re losing.

Profit Factor is essential because it doesn’t just show how often you win—it shows how much you’re making when you win versus how much you’re losing when you don’t. In other words, it gives you a clear view of whether your strategy is profitable in the long run.

The formula for calculating Profit Factor is straightforward:

Profit Factor = Total Gross Profit / Total Gross Loss

Components of the Calculation

• Total Gross Profit: This includes all your winning trades over a specific period.
• Total Gross Loss: This includes all your losing trades over the same period.

Example Calculation

Imagine you’ve made $10,000 in profits and $5,000 in losses over a month. Your Profit Factor would be:

Profit Factor = 10,000 / 5,000 = 2.0

This means for every dollar you lose, you make two dollars in return—a strong indication that your trading strategy is working well.

It’s incredibly easy to track your profit factor across various parts of the app. Whether you’re looking for a quick snapshot of your overall performance or want to dive deeper into specific strategies, you’ll find it here.

1. Dashboard Page: At the top of the Dashboard, you’ll see the Profit Factor in the metrics row, giving you a quick overview of your overall performance. Great for a fast check without diving deep.
2. Journal Page: On the journal page, you can filter your Profit Factor by specific strategies, asset types, or time frames. This makes it easy to dig into the data and see what’s working best for your trading.
3. Reports Page: The reports page offers a full breakdown of your trading performance, with the Profit Factor featured in the Trade Stats tool at the top. Ideal for getting a comprehensive view of how you’re doing over time or across different trades.