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

Abstract balance scale comparing profit and loss bars for profit factor backtest analysis

Profit Factor: What It Tells You About a 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

1 day ago3 min read