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Profit Factor value showing as x0.00 on two strategies
Topic Starter
Thu Nov 18, 2021 - 16:54
Hi WealthSignals Team,

The WealthLab User Guide states:
"Profit Factor" is the system's Gross Profit divided by Gross Loss. Look for systems that have a Profit Factor of 2 or higher
It also points out: "If your strategy has only winning trades and no losing trades, then Profit Factor is Infinity.
My strategies "Wealth Machine" and "Wealth Multiplier" are showing "x0.00" for Profit Factor on each strategy page, which is confusing for potential subscribers when the value displayed should be Infinity.

Thank you.
6 RESPONSES
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Thu Nov 18, 2021 - 18:29
Hi,

As I'm looking into the source code, the Wealth-Lab profit factor's calculation only considers closing trades. So far the systems in question do not have one. Hence the value is 0 and it should match Wealth-Lab.
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Topic Starter
Thu Nov 18, 2021 - 18:39
Thanks for looking into this. The backtested research results have closing trades, but also show Profit Factor of x0.00. If the backtested research results comprise 100% winning closed trades, should the backtested Profit Factor not be infinity?
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Topic Starter
Tue Nov 30, 2021 - 15:08
Ok, so after waiting for the profitable closed trade, "Profit Factor" continues to register as "x0.00". As said, an error in the way WS tries to display "infinity"was suspected because the backtested research results also show Profit Factor as x0.00 for 100% profitable trades.
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Wed Dec 1, 2021 - 16:06
Sorry, but we're not going to be able to accommodate an infinite profit factor right now. In any case, an extreme value of zero or infinity is meaningless for Profit Factor and one would have to look to the other metrics anyway to get a real sense of the system's dynamics.

You can add some text on your Strategy's information page that WealthSignals doesn't properly display an infinite profit factor because your system doesn't have any losing trades, or that it won't close trades until they're profitable (if that's actually the case).
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Topic Starter
Wed Dec 1, 2021 - 18:23
Agreed at looking to other metrics. My concern was that it creates confusion and looks like a mistake on my end. Ok, I can add a note - good idea. Thank you for looking into this.
Actually, the strategies are designed to avoid downturns by exiting when specific conditions are met, i.e., they don't simply "ride out" downturns until the market rises again just to close in the green.
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Topic Starter
Wed Dec 1, 2021 - 21:01
Incidentally, if the display limitation is 3 digits, is there any way you could modify the code to display infinity as x999? That's infinitely preferable to x0.00 ;)
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