# Strategy performance metrics

The underlying theory behind backtesting is that any trading strategy which has performed well historically may be likely to do so again in the future. Backtesting can also help quickly identify and avoid strategies that have historically performed poorly.

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**What is the profit factor?**

The profit factor is defined as the gross profit divided by the gross loss for the entire trading period. This performance metric relates the amount of profit per unit of risk, with values greater than one indicating a profitable system..
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### How to access: Navigate to the Backtest report

Select a strategy name from the **Test page** or run a backtest from the create **page**. The performance metrics can be found on the lefthand side of the backtest report.

<figure><img src="/files/RG7Qmdr4kJgZIlL80G7o" alt=""><figcaption></figcaption></figure>

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**Backtesting Bias**

If a trader were to pick and choose the stocks and time period in which their strategy is backtested against, the model would be fundamentally flawed. While the test may yield positive results, this would only be because the model was created to fit this data perfectly. Therefore, it is essential that different datasets and instruments are used throughout the testing process.

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