What’s your average Win Rate?

Many amateur traders mistakenly judge the success of a trading strategy or system based solely on Win Rate, believing that the best strategies must have a 70, 80, or 90 % win rate.

This is completely misguided as these types of strategies invariably lead to huge drawdowns, because they rely on risking many multiples more on each trade than they win. Example risking 100 pips to make 20 pips. A strategy like this for example has to be right at least 80 % of the time just to breakeven.

We approach trading with a professional mindset, and look for high probability trade setups that offer solid risk reward ratios. We are targeting an overall Win Rate of 40% with an average Reward to Reward ratio of 2:1 or higher. For example, risking 100 pips to make 200 pips.

To learn more about Win Rates and Risk Reward ratios, make sure to check this blog post:

Calculate Risk Reward Ratio Like a Professional Trader