top of page
Articles
Plain-language guidance on backtesting metrics, risk, sample size, and interpreting results more carefully.


What Is Profit-to-Drawdown Ratio in a Trading Backtest?
Profit-to-drawdown ratio compares reported profit with maximum drawdown. Learn what it measures, why it can mislead, and how to read it in context.

Lou Musto
Aug 124 min read


What Is Net Profit in a Trading Backtest?
Net profit shows the overall gain or loss reported across a backtest. Learn what it measures, why it can be misleading, and how to read it in context.

Lou Musto
Aug 113 min read


What Is Average Profit per Trade in a Trading Backtest?
Average profit per trade shows the average net result produced by each completed trade, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.

Lou Musto
Aug 103 min read


What Is Trade Count in a Trading Backtest?
Trade count shows how many trades contributed to a backtest result, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.

Lou Musto
Aug 103 min read


What Is Maximum Drawdown in a Trading Backtest?
Maximum drawdown shows the largest decline in a backtest, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.

Lou Musto
Aug 93 min read


What Is Profit Factor in a Trading Backtest?
Profit factor can summarize the balance between gross profits and gross losses, but the number needs context. Learn what it measures, where it can mislead, and what to review alongside it.

Lou Musto
Aug 83 min read
bottom of page