Basically Profit Factor means that if I invest 1 dollar I can expect to get 2.5$ back from trading that model. So I can expect to take back my dollar and earn a profit of 1.5$ per contract. So a profit factor equal 1 means that if you invest 1 dollar, you get back exactly the dollar you invested (not that good deal) while taking the risk of losing it. A profit factor higher than 1.5 means that you get half the investment corrisponding value in profit, so for each dollar invested you earn 50 cents.
Profit Factor for this report is 2.50, but what really is profit factor? It is the ratio between Gross profits 895.57$ and Gross loss 357.86$ in this model.Nqsically Profit Factor means that if I invest 1 dollar I can expect to get 2.5$ back from trading that model. So I can expect to take back my dollar and earn a profit of 1.5$ per contract. So a profit factor equal 1 means that if you invest 1 dollar, you get back exactly the dollar you invested (not that good deal) while taking the risk of losing it. A profit factor higher than 1.5 means that you get half the investment corrisponding value in profit, so for each dollar invested you earn 50 cents.[/quote]</p>
Profit Factor for this report is 2.50, but what really is profit factor? It is the ratio between Gross profits 895.57$ and Gross loss 357.86$ in this model.Nqsically Profit Factor means that if I invest 1 dollar I can expect to get 2.5$ back from trading that model. So I can expect to take back my dollar and earn a profit of 1.5$ per contract. So a profit factor equal 1 means that if you invest 1 dollar, you get back exactly the dollar you invested (not that good deal) while taking the risk of losing it. A profit factor higher than 1.5 means that you get half the investment corrisponding value in profit, so for each dollar invested you earn 50 cents.[/quote]</p>
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