Is it really that important & quot; Profit factor" how he is painted.

Profit factor is calculated as the ratio of the sum of all profitable trades, to the sum of all unsuccessful deals (Gross ProfitGross Loss) за какой-то определенный промежуток времени.

From reading various forums and other places of discussion about the construction of mechanical trading systems, it seems that the overwhelming majority of system builders see a coefficient called the `` profit factor '' as the main measure of the effectiveness of a system.. Actually, in my opinion, he is not an indicator of the system at all. Or rather, not as important as it was painted. Profit Factor System 1.4 can be much more efficient than a system with a profit factor 30. Probably many people do not even know that BIGGEST Possible Profit Factor & quot; infinity" have buy-and-hold systems. For example, купил в 2005 year Microsoft promotions, sold today with minimal profit earning almost nothing, having withstood all giant drawdowns, a & quot; profit factor" turned out endless. And the one who intradeil every day and made a fortune over the years had a profit factor of only 1.19.

As a matter of fact, what is profit factor? This is the ratio of total profit to total loss. To increase the profit factor, you must either increase the total profit(the sum of all profitable trades), or reduce the total loss(the sum of all losing trades). For example, the total loss will be much less, and the profit factor is much larger if you do not use stops in the system. Type, outlived the drawdown and closed with a plus or zero. And the loss will not be reflected in the performance of the system, since it somehow did not exist — profit factor will grow significantly. And the one who mercilessly cuts losses and thereby increases the total loss, significantly reduces its `` profit factor ''.  

So that, if someone says that he does not recognize a system with a profit factor below 3 (трех), it means that he didn't say anything :)

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