The total count of all trades executed within a specified period (usually a month).
Tracking the number of trades helps traders assess whether they are overtrading or undertrading. Too many trades may indicate impulsive behavior, while too few may signal hesitation or lack of opportunity.
A trader reviews their monthly trading log and sees they placed 150 trades. If their win rate is 50% and they have a positive profit factor, they can determine whether they are trading efficiently or excessively.
The average profit in dollars a trader earns on a winning trade. It measures profitability per successful trade.
The average loss in dollars a trader incurs on a losing trade. It reflects the risk exposure per unsuccessful trade.
The percentage of trades that result in a profit.
A measure of profitability, calculated as the ratio of total profits to total losses. A profit factor above 1 indicates a profitable strategy.
The number of calendar days during which trades were placed. Used to evaluate trader consistency and activity.