High Win Rate vs Low Win Rate

High Win Rate vs Low Win Rate.

Good trading is many things and one of it is consistency. I now realize that “win rate“ is more than just a formula or ratio. It is more than just comparing winning trades and losing trades.

It’s a key signal to tell you if you are being consistent.

Having been in the stock and currency markets for more than 15 years, one of the things I should have done is use the win-rate to (i) assess consistency and (ii) evaluate the quality of my trading strategy.

You see, when my trading strategy is not profitable, I keep changing stuff and do things differently to try and get better results. This is against all good advice (don’t keep changing your trading strategy) but as an unprofitable trader back then, I could not help it. I want better returns on my trades, higher profits, smaller losses, more winning trades percentage, all that good stuff.

The impact to my win-rate is that it will fluctuate when I don’t stick to one strategy. Some strategies will deliver higher win-rate and some other strategies will not.

So it’s really useful to know that if you are trading a specific strategy and want to check your quality and consistency of execution, check your win-rate. It should stay within an acceptable range. The smaller the range, the more disciplined you are in terms of trading consistently.

‘Trump trade‘ is still on. Enjoy your trading.

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