Edge
What is profit factor?
Total dollars from winners divided by total dollars from losers.
Definition
Total dollars from winners divided by total dollars from losers.
Profit factor, explained
A profit factor above 1.0 means you made more than you lost overall. Above 1.5 is solid; above 2.0 is excellent. Below 1.0 means your losing trades collectively cost more than your winners earned — a strategy that needs review.
A worked example
$8,000 in wins, $4,000 in losses → profit factor 2.0.
Where profit factor shows up in a journal
A trading journal is where this stops being a definition and becomes your own number. sizeforzero computes it from the trades you import or log, alongside the rest of your analytics vocabulary, and every figure in the app carries an (i) that explains it in the same plain English you just read.