Profit factor

Gross winnings divided by gross losses across settled trades.

A profit factor of 1.0 is breakeven. A value of 1.5 means the wallet won a dollar fifty for every dollar it lost. It is computed from settled positions with dust filtered out, so a hundred one-cent trades cannot move it.

Its virtue is insensitivity to both trade count and hit rate, which makes it a useful corrective to the two numbers people over-read. A trader winning thirty-five percent of the time with large winners and small losers can post a strong profit factor and a weak win rate at once, and that combination is common among genuinely skilled participants in longshot markets — where being right rarely and being paid enormously is the entire strategy. Judging that record by win rate would call it bad.

Its blind spot is concentration. One enormous winner produces a high profit factor from a record that is not repeatable, and nothing in the ratio itself reveals that. This is the standing reason it is displayed next to Sharpe, maximum drawdown and the streak counters rather than alone: each of those catches a different way for a good-looking number to be an accident.

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Definitions describe how Polymarket and Kalshi behave and how WhaleTracks models them; venue rules and fee schedules can change, so confirm anything you size a position on with the venue itself. WhaleTracks is informational analytics, not financial advice. Past performance does not guarantee future results.