7-Metric Profitability Dashboard

Click any metric to see how to calculate it in MT5, a real example, and what to do if yours is in the bad zone.

Profit Factor

Total gross profit ÷ total gross loss. The single most important number.

>1.5~ 1.0–1.5<1.0

Win Rate

50% win rate with 2:1 R:R is great. 80% win rate with 0.5:1 R:R is terrible.

Context-dependent~ High win rate with low R:RAny win rate with negative EV

Expected Value (EV) per Trade

Win rate × avg win − loss rate × avg loss. Must be positive.

>0~ Just above 0≤0

Max Drawdown

The number you will feel emotionally.

<20%~ 20–35%>35%

Recovery Factor

Total profit ÷ max drawdown. How much reward per unit of risk taken.

>3~ 1–3<1

Sharpe Ratio

Return per unit of volatility. The hedge fund metric.

>1~ 0.5–1<0.5

Consecutive Losses

More important than total losses. 10 in a row at 1% risk = 10% DD. Are you prepared?

Context-dependent~ More than mentally prepared forCausing account size problems

How to Know If Your Gold EA Is Actually Profitable: The Metrics That Matter

Quick Answer

Total P&L is the wrong metric. The 7 metrics that actually matter are: profit factor, win rate in context of R:R, expected value per trade, max drawdown, recovery factor, Sharpe ratio, and maximum consecutive losses. All 7 are available in MT5 for both backtests and live accounts.

Why the Number in Your Balance Column Misleads You

Imagine an EA that ran a $10,000 account to $50,000 in 6 months. Impressive? Now imagine it used a martingale lot sizing that compounded positions aggressively — and the following month the account went from $50,000 to $0 after an unexpected gold gap. Was it profitable? By one measure yes. By every meaningful measure, no.

The balance in your account tells you the outcome of a specific sequence of trades under specific market conditions. It does not tell you whether the underlying strategy has positive expected value, whether it is surviving on skill or luck, or whether it will continue to perform when conditions change. The 7 metrics in this guide answer those questions.

The Priority Order for Evaluating These Metrics

Not all 7 metrics are equal in importance. Here is the evaluation hierarchy:

1st

Expected Value per trade

If EV is negative, nothing else matters. The strategy cannot be profitable long-term.

2nd

Profit Factor

The most robust summary of the overall edge. Focus on this first for live accounts.

3rd

Max Drawdown %

Determines whether you can psychologically maintain the strategy through its worst period.

4th

Sample Size

None of the above metrics are meaningful with fewer than 100 trades.

5th–7th

Win Rate, Recovery Factor, Sharpe

Contextual metrics that refine the picture once the primary metrics are confirmed.

When to Keep Running vs When to Pause

The hardest decision in EA management is whether current underperformance is temporary (the EA is in expected drawdown) or structural (the edge has shifted). Here is a decision framework:

Drawdown within historical backtest range

Keep running — this is expected variance

Drawdown 110–150% of historical max

Monitor closely — unusual but not necessarily fatal

Drawdown exceeds 150% of historical max DD

Pause and investigate — this is outside expected parameters

Profit factor below 1.0 after 200+ live trades

Pause — the strategy may have lost its edge in current conditions

Live results match backtest within 25%

Continue — the strategy is behaving as designed

Score Your EA's Profitability

Select the option that matches your EA's current metrics.

Profit Factor:

Max Drawdown:

Win Rate:

Live trades in sample:

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