Forex Profit Factor Definition

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Profit Factor The profit factor is defined as the gross profit divided by the gross loss including commissions for the entire trading period. This performance metric relates the amount of profit per unit of risk, with values greater than one indicating a profitable system..Profit Factor is simply defined as gross profits divided by gross losses. That s it in a nutshell, but sometimes the simplest things hold the most value. So let s imagine your trading system s gross profit for the past year was $, and your gross losses were $,. Your Profit Factor would be ..

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