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
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.