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Profit factor is gross profit divided by gross loss. Here is the exact step-by-step process for calculating it correctly from your own trading journal data, with a worked example and the mistakes that quietly skew the number.
Profit factor is gross profit divided by gross loss. Above 1.0 means a strategy made more on winners than it lost on losers; a definition, formula, and interpretation guide.
A high win rate does not guarantee profitability. Learn how expectancy, payoff, costs, sample size, and drawdown determine a strategy’s real edge.
A prop firm payout gets reviewed against your full trading history, not just your balance. These six journaling habits, not trading mistakes, are what usually trip that review.
TradingView logs your trade history through Paper Trading and connected brokers, and can now feed it into Portfolios analytics. What it still lacks is a structured journal: setup tags, entry reasoning, and R-multiple. Here is what to pair it with.
Win rate is the percentage of trades that closed profitable, calculated as winning trades divided by total trades. Learn the formula, typical ranges, and why win rate alone does not determine whether a strategy is profitable.
Trading discipline holds when it is built into structure before a session opens, not held together by willpower once a position is live. Here is the build order: one rule, moved into structure, protected by friction, and confirmed through the trading journal.
A challenge fee buys one attempt, not a guarantee. The refund usually arrives with the first payout, not the pass, so resets and repeat attempts are what actually decide whether the fee pays off.
A trader can win 70 percent of trades and still lose money. R-multiple, which measures each trade's result against the risk taken, is what turns win rate into a number that actually predicts profitability.
A payout isn't automatic once an account is profitable. Minimum trading days, the consistency rule, and profit split all get checked, and missing any one is the most common reason a payout gets delayed or denied.
For most traders, yes, because memory cannot reliably do what a consistent log can: separate a real pattern from a short streak. Here is what a journal actually changes, and what it cannot fix.
Drawdown is the decline in an account's value from a previous peak to a subsequent low. Here is how it is calculated, why daily and maximum drawdown differ, and why it matters more than a single loss.
