Performance
Gross profit divided by gross loss. Above 1.0 means the method made money; 1.5 means £1.50 returned for every £1.00 lost.
It should be calculated from the account statement rather than chart prices, since spread and commission are invisible in the latter and often decisive.
Taught in
Profit Factor and ExpectancyMeasuring Your EdgeTwo numbers that answer the only question that matters: is this method making money, and how much per trade?
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