HOME A Word of Advice	Trading systems terminology Trading systems have their own terminology that defines the parameters determining the system quality. The definitions of the most basic of them are listed below. You can find them on the data pages of my systems or in this article. Profit Factor-the total of profits divided by the total of losses for a given sample of trades. Win/Loss Ratio- the average profit per trade divided by the average loss per trade for a given sample of trades. Win Frequency- the percentage (fraction) of trades that are winners in a given sample of trades.
	Disclaimer: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS UNLIKE AN ACTUAL PERFORMANCE RECORD. SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.