Profit Factor

Profit Factor - The ratio of gross profit to gross loss. It measures profitability per unit of loss. MT5 defines Profit Factor as gross profit divided by gross loss. cTrader’s “Profit Factor” is often net profit divided by net loss (slight difference because of sign handling). A PF >1 means profits exceed losses; e.g., a PF of 2.0 means $2 profit for every $1 loss on average. Traders use profit factor to gauge system quality; a higher PF is generally better (common targets are >1.5 or 2.0).