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Profit Factor
A comparison of gross profit with gross loss across the measured closed trades.
It is commonly calculated by dividing gross profit by the absolute value of gross loss. A result above or below a particular value describes only this historical relationship. Profit factor does not account for every aspect of a backtest and should not be considered by itself.
Also called:
PF; gross-profit-to-gross-loss ratio
Related terms:
Gross Profit; Gross Loss; Trade Count
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