Profit Factor v.s Expected Payoff

Beginner Questions
1

Hi,
I want to make a chart of “Average Profit per Trade” versus a certain variable that I am optimizing in Metatrader’s strategy tester. As this variable of mine increases the number of trades will drastically decrease – I do not want the decreasing number of trades to have any effect on the chart I’m trying to make.

Which is what I want - [B]Profit Factor[/B] or [B]Expected Payoff[/B]?
From what I understand, Profit Factor = Gross Profit/Gross Loss. This seems to be exactly what I want… however after looking up “Expected Payoff” on another forum I found someone saying that “Expected payoff=14.57 means that on average for every trade made, you earned $14.57.” So which one is it?? Or would either one do?

2

Profit.Factor = Gross.Profit/Gross.Loss

Expected.Payoff = Net.Profit/N
Where Net.Profit = (Gross.Profit - Gross.Loss) and N = # of trades

3

Yes I am aware of this… but which one of those is most like “Average profit per trade”?

4

If you want to disregard N, I think Expected Payoff is the correct equation. This would technically be “the average gross profit per gross loss” and not “average profit per trade.”

5

Ok great. Thanks for your help :slight_smile:

6

if you want average profit per trade just count the number of trades and divide the gross profit by that number

Edit: or divide the net profit if you want the average net profit