Decent Profit Factor

Discussion in Psychology and Money Management

Updated November 14, 2010

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Hard 8 with 2 posts (1 thanks)
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Decent Profit Factor

November 11th, 2010, 03:36 PM	#1 (permalink)
DarrenH Cotswolds UK Elite Member Experience: Intermediate Platform: NT7, Multicharts Broker: Mirus,Amp,ZenFire Trading: Fdax Posts: 64 since Mar 2010 Thanks Given: 95 Thanks Received: 23	Hey Guys What would be considered a decent daily profit factor. 1st for manual trading 2nd for running a automated program

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November 11th, 2010, 11:02 PM

#3 (permalink)

Hard 8

Cheyenne, WY

Posts: 66 since Nov 2010

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DarrenH

Hey Guys

What would be considered a decent daily profit factor.

1st for manual trading
2nd for running a automated program

1.5 is good.

2.0+ is Holy Grailish as far as I'm concerned.

It doesn't matter how you trade to get the results.

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November 11th, 2010, 11:35 PM	#4 (permalink)
gilyee Summit, NJ Elite Member Experience: Intermediate Platform: NinjaTrader Broker: IB/esignal Trading: futures Posts: 5 since Apr 2010 Thanks Given: 4 Thanks Received: 7	My automated system trading CL has been profitable on 67% of the trades but only has a profit factor of 1.22. These were the results for the last 6 months though. I don't know if that is considered good but I'm happy with it so far.

November 11th, 2010, 11:51 PM

#5 (permalink)

Hard 8

Cheyenne, WY

Posts: 66 since Nov 2010

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gilyee

My automated system trading CL has been profitable on 67% of the trades but only has a profit factor of 1.22. These were the results for the last 6 months though.

I don't know if that is considered good but I'm happy with it so far.

Frankly, statistics are meaningless. How much cash has it generated after slippage and commissions in a live account?

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November 12th, 2010, 07:25 AM

#6 (permalink)

traderwerks is a Vendor

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Hard 8

1.5 is good.

2.0+ is Holy Grailish as far as I'm concerned.

It doesn't matter how you trade to get the results.

A profit factor should mention over how long and how many trades, in general.

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November 14th, 2010, 05:11 PM

#7 (permalink)

powermoney

North Carolina

Experience: Advanced

Platform: Ninjatrader

Broker: IQ Feed

Trading: GC, 6E, CL

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gilyee

My automated system trading CL has been profitable on 67% of the trades but only has a profit factor of 1.22. These were the results for the last 6 months though.

I don't know if that is considered good but I'm happy with it so far.

When looking at the % of profitable trades numbers, it's a good idea to also take account of WIN/LOSS ratio. What was the average dollar gain of the winning trades vs the average dollar loss of the losing trades?

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Last Updated on November 14, 2010

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