Profit factor
Shows how many dollars of gross profit came for each dollar of gross loss.
Profit factor compares all money won with all money lost. It is a simple ratio: how many dollars of winning trades were collected for each dollar of losing trades.
It helps see whether winners had enough cushion over losers. It is especially useful beside expectancy, because both can show whether the system was positive after costs, but from different angles.
Below 1 means gross losses were larger than gross profits. Around 1 is close to break-even before other caveats, 1.2-1.5 often looks workable, and above 2 looks strong only when the sample is large enough. If there are no losing trades, the platform shows a dash rather than infinity, because infinity would be misleading.
Example: winning trades total $1,500 and losing trades total $1,000. Profit factor is 1,500 / 1,000 = 1.5. If the same wins came with $2,000 of losses, profit factor would be 0.75.
How we compute it
Gross Profit is the sum of positive net P&L, and Gross Loss is the absolute sum of negative net P&L. Profit Factor is Gross Profit divided by Gross Loss; if there are no losses, we show a dash instead of infinity.