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It is insignificant to rate a trading system based on Profit Factor. Long
term based systems generally tend to have a higher Profit factor while
short term based systems exhibit very small profit factors. If you rate
systems by profit factor, you will end up trading a higher percentage of
long term systems and you will end up throwing out good short term systems.
As Chuck said, you need to evaluate many other measurements as well, not
just profit factor. This is where "discretion" or "subjectivity" sets in
when evaluating trading systems. There is no perfect mathematical number or
measurement to evaluate trading systems. For me I look at NetProfits over
Drawdown, max Drawdown and consistency of returns over each financial quarter.
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