Profit factor = gross profit ÷ gross loss: what your winning trades made divided by what your losing trades lost. Above 1 the trades made money; below 1 they lost it. Enter your two totals, or paste your trade results, and this calculator gives the profit factor and how much of it rests on your biggest winners.
What your winning trades made, added up.
What your losing trades lost, as a positive amount.
profit factor = gross profit ÷ gross loss
gross profit = sum of winning trades
gross loss = sum of losing trades, as a positive numberA trade that closes at exactly zero counts in neither total. With no losing trades the ratio has nothing to divide by, so the calculator says so instead of printing a number.
The trade list mode also shows the win rate, the average win and loss, the expectancy per trade (the net result over the number of trades), and the profit factor with your biggest winners taken out.
Take these 12 trade results in dollars: $420, −$150, −$90, $260, −$180, $75, −$120, $640, −$60, $130, −$210, $95.
These are the usual readings. They are conventions, and a short trade record can land anywhere on the table by luck.
| Profit factor | The usual reading |
|---|---|
| below 1 | the trades lost money |
| 1 to 1.5 | a thin edge that fees and slippage can erase |
| 1.5 to 2 | a solid edge |
| 2 to 3 | strong |
| 3 and above | rare; check the trade count and how much rests on a few winners |
Across the 18 strategies in Keel's public library, backtested on Hyperliquid perps from Aug 15, 2024 to Jul 5, 2026, the median profit factor is 1.42; half of them sit between 1.23 and 2.41. Keel's backtests count each closed trade after its trading fees and slippage; funding is charged to the account, not to the trade, so it is not in the profit factor. See the strategies and their backtests.
A profit factor can look healthy because of one or two outsized trades. The calculator takes out your biggest winner, then your three biggest, and works the profit factor out again on what is left.
If it stays above 1, the edge is spread across many trades. If it drops below 1, a few trades carry the whole result, and the next stretch without such a trade is likely to lose money. Before you size up, check how often trades like those happen; the Monte Carlo simulation shows how the same trades play out in other orders.
Keel is a strategy builder for Hyperliquid. Describe an idea, backtest it with fees, slippage and funding, and run it live on Hyperliquid’s crypto perps. Start free, and connect a wallet when you’re ready to trade.
Add up every winning trade (gross profit), add up every losing trade as a positive number (gross loss), and divide the first by the second. For the 12 example trades on this page, gross profit is $1,620 and gross loss is $810, so the profit factor is 2.00.
By the usual rule of thumb: below 1: the trades lost money; 1 to 1.5: a thin edge that fees and slippage can erase; 1.5 to 2: a solid edge; 2 to 3: strong; 3 and above: rare; check the trade count and how much rests on a few winners. Across the 18 strategies in Keel's public library, backtested on Hyperliquid perps from Aug 15, 2024 to Jul 5, 2026, the median profit factor is 1.42; half of them sit between 1.23 and 2.41. Keel's backtests count each closed trade after its trading fees and slippage; funding is charged to the account, not to the trade, so it is not in the profit factor.
The winning trades made exactly what the losing trades lost, so the trades broke even. If the trade results you entered are before fees, a profit factor of 1 is a loss once fees are paid.
Neither alone. A strategy can win most of its trades and still lose money if its losses are large, and a strategy that wins less than half the time can make money if its winners are big. Profit factor already combines the two: it is the win rate and the size of wins against losses in one number. Use the win rate calculator to see the win rate you need at your reward to risk.
Usually because there are few trades or one big winner. A profit factor from a handful of trades moves a lot with each new trade, and a single large win can carry the whole number. Check the two lines that remove your biggest winners: if the profit factor falls below 1 without them, the edge rests on a few trades.
Only if the trade results you enter include them. Enter results after fees, and funding if you hold perps, to measure what you actually kept. Keel's backtests count each closed trade after its trading fees and slippage; funding is charged to the account, not to the trade, so it is not in the profit factor.