RISK · PROFIT FACTOR

Profit-Factor Journal Reviews: A Worked Crypto Example With Fees Included

Profit factor divides gross profits by gross losses. Where fees are counted changes the ratio, so state it.

Short answer

Profit factor = total winning P&L ÷ total losing P&L. A 60-trade journal with $9,800 of winning P&L and $7,000 of losing P&L before fees has a profit factor of 1.40. With $20 of fees per trade (24 winners, 36 losers), wins net $9,320 and losses grow to $7,720: profit factor ≈ 1.21. A ratio near 1.2 leaves little margin for higher costs or a worse market; always report whether fees are included.

Worked example

StepValue
Trades60 (24 wins, 36 losses)
Winning P&L before fees$9,800
Losing P&L before fees$7,000
PF before fees1.40
Fees$20 × 60 = $1,200
Wins net / losses incl. fees$9,320 / $7,720
PF after fees≈ 1.21
Profit factorProfit factor: Before fees 1.40 ; After fees 1.21 .PROFIT FACTORBefore fees1.40After fees1.21
Fees cut the margin above 1.0 roughly in half. Original ChartsPod editorial graphic.

Reading it

Profit factor above 1 means net profit, but it says nothing about drawdown or sample size. Report it by setup and over rolling windows; a falling profit factor is an early warning.

Profit factor reportProfit factor report: Fees included (state it); Trade count; By setup; Rolling window; With max drawdown.PROFIT FACTOR REPORTFees included (state it)Trade countBy setupRolling windowWith max drawdown
PF alone is incomplete. Original ChartsPod editorial graphic.

Conclusion

Related: Trading Expectancy: A Worked Crypto Example With Fees Included, Maximum-Drawdown Reviews: A Worked Crypto Example With Fees Included.

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Profit factor = total winning P&L ÷ total losing P&L.

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Questions readers ask

What is a good profit factor?

Above 1 is profitable; margin matters.

Are fees included?

State it; they change the ratio.

Does PF show risk?

No; pair it with drawdown.

Sources and methodology

Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).

  1. Bybit: Liquidation process — mark price and margin modes.
  2. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.