What is a good profit factor to target for EUR/USD Strategy System

Discussion in 'Forex' started by tacmot, Nov 16, 2006.

  1. tacmot


    Hi FX Traders, what is a good profit factor and sharpe ratio to target for a FX Strategy system in Tradestation where I am trading 5 minute bars in EUR/USD, many thanks tacmot
  2. romik


    PF is the same in any market you trade and/or business and is determined by your ability, not what is acceptable. Your overheads determine the ratio. Average PF of 2 = consistent profitability. Think of it in terms of a Gross Profit in a regular business, if you buy for $1 and sell for $2 and your overheads are $0.50, then you are profitable @ PF of 1.5. If you increase profit margin to $4, then your profit increases substantially and PF becomes 3.5.