What Is Profit Factor in Trading? Definition, Formula, and Interpretation
Profit factor is a performance metric calculated by dividing gross profits by gross losses over a specified trading sample.
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Clear explanations of the market, macro, and trading terms used across MyTrade Academy.
What Is Reproducibility in Financial Research?
Reproducibility means another researcher can reconstruct a result from documented sources, data transformations, rules, code or formulas, and assumptions.
Read definitionWhat Is Resistance in Trading? Ceilings Are Zones Too
Resistance is a price band where selling has repeatedly absorbed buying. It is a reference for risk and targets, not a guarantee that price will turn down.
Read definitionWhat Is Revenge Trading? Re-Entering to Win Back a Loss
Revenge trading is re-entering the market quickly after a loss, specifically to win back what was lost. Sizing and timing are driven by the prior loss, not by a new, independently valid setup.
Read definitionWhat Is Revenue?
Revenue is the income a company generates from selling goods or services before most costs are deducted. Revenue growth does not automatically mean profit growth.
Read definitionWhat Is Risk Appetite? Risk-On vs Risk-Off Explained
Risk appetite describes how willing investors are to hold assets with uncertain returns. Learn what risk-on and risk-off mean and why sentiment can change market reactions.
Read definitionWhat Is Risk in Trading? Why It Is a Boundary, Not a Feeling
Risk in trading is not the fear of losing; it is the consequence you define before entering: how much capital you can lose, how long you can wait, and what evidence means you are wrong.
Read definitionWhat Is Rolling Correlation? Tracking Changing Asset Relationships
Rolling correlation recalculates statistical co-movement across moving time windows, exposing regime shifts, breakdown of hedges, and dynamic market linkages.
Read definitionWhat Is RSI? A Momentum Gauge, Not a Reversal Button
RSI (Relative Strength Index) compares recent up-moves with down-moves on a 0–100 scale. Above 70 means stretched — not that a fall is due.
Read definitionWhat Is Scaling Out? Closing Part of a Position at a Target
Scaling out closes part of a position at a target and lets the rest run. It balances banking gains against riding a move, but only works as a pre-written rule.
Read definitionWhat Is Scenario Analysis in Trading? Planning Actions for Possible Outcomes
Scenario analysis writes down what you will do if several possible things happen, each with its own invalidation. It prepares actions, not certainty.
Read definitionWhat Is Slippage? Why a Stop Price Is Not a Guaranteed Fill Price
Slippage is the difference between the price you expect and the price you actually receive. It becomes most visible during gaps, fast markets, and periods of thin liquidity.
Read definitionWhat Is Spare Capacity in Commodity Markets?
Spare capacity is production capability that can be brought online relatively quickly without building entirely new facilities.
Read definitionWhat Is Support in Trading? Why It Is a Zone, Not a Line
Support is a price band where buying has repeatedly absorbed selling in the past. It is a probability and a place to define risk, not a wall that guarantees a bounce.
Read definitionWhat Is Swing Trading? Riding Moves That Take Days to Weeks
Swing trading holds positions for days to weeks around market swings. Fewer decisions, costs in the background — and the discipline to sit through drawdowns without interfering.
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