Gross profit divided by gross loss across your trade history.
Profit Factor = Gross Profit ÷ Gross Loss. A PF of 1.0 means breakeven. PF > 1.5 is generally considered a viable strategy. PF > 2.0 is strong. PF > 3.0 should be treated with suspicion — it may indicate overfitting on limited data.
Profit factor is robust because it accounts for both frequency and magnitude of wins and losses in a single number. Aim for PF ≥ 1.5 on at least 200+ trades before trading a strategy live.