---
title: "Profit factor - Meaning & GFN's Figure - Get Funded Now"
description: "Gross profit divided by gross loss across a sample of trades. A profit factor above 1 means the strategy made money; below 1 means it lost, whatever the…"
url: "https://getfundednow.com/glossary/profit-factor"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/profit-factor"
  pt-BR: "https://getfundednow.com/pt-br/glossary/profit-factor"
  fr: "https://getfundednow.com/fr/glossary/profit-factor"
  it: "https://getfundednow.com/it/glossary/profit-factor"
  de: "https://getfundednow.com/de/glossary/profit-factor"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Strategy and performance

# Profit factor

Gross profit divided by gross loss across a sample of trades. A profit factor above 1 means the strategy made money; below 1 means it lost, whatever the win rate suggests.

GFN’s figure

Profit factor ignores sequence, which is precisely what GFN's 8% floor tests. Pair it with the worst historical peak-to-trough before deciding an account size.

In detail

## Profit factor, explained

Profit factor is the most compact summary of a track record, and it is inflated by a small sample or by one outsized winner. Checking the figure with the largest win removed is a quick reality test.

It says nothing about drawdown, which is the part that decides whether a prop account survives. A strategy with a good profit factor and a deep worst losing run still breaches a fixed floor.

[Rules handbook](https://getfundednow.com/rules) · [More strategy and performance](https://getfundednow.com/glossary/category/strategy)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Expectancy](https://getfundednow.com/glossary/expectancy) - The average result of a trade over a large sample, combining win rate and average win and loss. A positive expectancy is necessary for a strategy to work and not sufficient for it to pass an evaluation.
- [Win rate](https://getfundednow.com/glossary/win-rate) - The proportion of trades that finish profitable. On its own it says nothing useful - a 90% win rate with one outsized loss and a 35% win rate with large winners can produce the same result.
- [Peak-to-trough](https://getfundednow.com/glossary/peak-to-trough) - The decline from an equity curve's highest point to its lowest subsequent point before a new high is made. It is the standard way of stating how deep a strategy's worst historical losing run was.
- [Sharpe ratio](https://getfundednow.com/glossary/sharpe-ratio) - Return above a benchmark cash rate, divided by the volatility of those returns. It measures how much variability was accepted per unit of return, so a smoother equity curve scores higher.
- [Backtesting](https://getfundednow.com/glossary/backtesting) - Running a strategy over historical data to estimate how it would have performed. Useful for rejecting ideas, weak as evidence for accepting them, because the result is fitted to data already seen.

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Source: https://getfundednow.com/glossary/profit-factor
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt