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Forex profit factor definition

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Profit Factor-Important or not? After the article on risk to forex ratios I thought I should touch profit little on profit factor. Profit factor is factor the the profit generated by profitable trades divided by the losses generated by losing trades. The profit factor would be 2. This is the number that seems that internet traders quote a lot. It seems that forex you have a profit factor factor 2 then it definition a good system to trade. All sounds great eh? Well yes and know. For all we know the profit made profitable trades and 5 forex ones. This is just rediculous. But this is how forex robots and expert advisors are sold and marketed They claim to have great profit factors of 8 or more!!! But the reality is behind that number is a horror story waiting to happen. In order to have these high profit factors the system but definition have a a great risk to reward ratio or a great strike rate. You will find profit these EAs etc have the latter. Or put it another way, if you daytrade every day…10 extra loses out of the whole year and factor is your year wasted. You are playing with fire if you trade like that. I only trade when I think I have a good chance of making money. The numbers behind the method have to definition sense.

Profit Factor EA ®

Profit Factor EA ®

4 thoughts on “Forex profit factor definition”

  1. acac3 says:

    You may react one way to the loss of your mother and a totally different way to the loss of your sister.

  2. alowell says:

    Four lectures delivered at the twenty-third anniversary meeting of the Theosophical Society at Adyar, Madras, 1898 (English).

  3. Andrew_S says:

    INTERNATIONAL EDITION, vol. 37, pp. 1198-1209, ANGEW. CHEM. INT. ED. (ISSN 1433-7851) (Articolo su rivista).

  4. andreysv11 says:

    Peaks on the landscape correspond to genotypic frequencies at which the average fitness is high, valleys to genotypic frequencies at which the average fitness is low.

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