What Profit Factor Shows in Tradapt
Tradapt calculates profit factor (Gross Profit ÷ Gross Loss) across multiple dimensions simultaneously:
- Overall PF: Across all trades in your selected period
- PF by Setup: For each named setup in your playbook
- PF by Session: London, NY Open, Midday, etc. (requires session tags)
- PF by Instrument: For each symbol you trade
- PF by Emotional State: For each emotional state level (1–5)
Finding It in Tradapt
Go to Analytics > Performance and select your time period. The Summary tab shows aggregate profit factor. Use the Filters panel to segment by setup, session, or instrument.
Interpreting the Numbers
| Profit Factor | What It Means |
|---|---|
| Below 1.0 | Net losing in this segment — eliminate or pause |
| 1.0–1.3 | Marginal — costs may eliminate the edge |
| 1.3–1.7 | Working edge — continue refining |
| 1.7–2.5 | Strong edge — focus here, consider scaling |
| Above 2.5 | Exceptional — validate it's not a small sample |
Using Setup-Level PF to Improve Your Trading
The most actionable use of profit factor:
- List your setups ranked by PF (highest to lowest)
- Take the top 2 setups and confirm you're taking them every time they appear
- Take the bottom 1–2 setups and either pause them or reduce size significantly
- Over 30 more trades, re-evaluate the bottom setups
This process, repeated quarterly, naturally filters your trading toward your highest-expectancy setups.
Minimum Sample Size
Profit factor requires a sufficient sample to be meaningful:
- Below 20 trades: Not statistically reliable — large variance possible
- 20–50 trades: Indicative, but still subject to variance
- 50+ trades: Reliable baseline — safe to draw conclusions
Avoid making major setup decisions based on fewer than 30 trades in that specific filter.