Futures Profit Factor Explained

Profit factor compares gross realized wins with the absolute value of gross realized losses for the selected sample.

What to measure

Calculate gross wins divided by absolute gross losses, then inspect trade count and largest win because a single outlier can inflate the ratio.

A repeatable workflow

Use the same date range and completed-trade rules each time. Compare profit factor alongside expectancy and payoff ratio.

Common mistake

Profit factor is undefined when a sample has no losses and unstable in very small samples. Treat that as missing evidence, not perfection.

Use these measurements as an educational review of recorded executions, not as a prediction or trading recommendation.