What is “Profit Factor"?

Profit Factor is a key metric used by top hedge funds worldwide to assess the effectiveness of a trading strategy and guide investment decisions.

We calculate the Profit Factor by dividing the net PnL (profit and loss) of all positive trades (after accounting for commissions and swap fees) by the net PnL of all negative trades.

To pass a Profit Factor Challenge, you must meet both the required Profit Factor and the winning trade percentage within the specified number of trades.