The formula is only the start
Profit Factor is gross profit divided by gross loss. A high value on a small sample can be random.
How to read the metric together with drawdown, trade count and consistency.
06.07.2026 · PnLFlowProfit Factor is gross profit divided by gross loss. A high value on a small sample can be random.
Evaluate it alongside maximum drawdown, average risk and the distribution of results across strategies.