Profit Factor

Profit Factor – A common performance metric: the ratio of gross profit to gross loss. It appears in backtest result tables (e.g. cTrader’s Trade Statistics tab). While not an optimization algorithm term per se, traders often use Profit Factor as an optimization criterion to maximize. (In MT5 you could choose “Profit Factor” if adding it via a custom criterion or examine it after runs.) A higher Profit Factor indicates more profitable trades relative to losses.

⬅ Robots Glossary