Lesson 5 of 10 · 9 min
Risk-Reward, Win Rate And Expectancy
Why a high win rate can still lose money, and the number that tells you whether a strategy pays.
Win rate on its own tells you very little. A strategy that wins 80% of the time can lose money if its losses are big. One that wins 35% of the time can make money if its wins are big enough.
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