You don’t need a high win rate to make big returns.
We’re right 60 percent of the time… but we’re 100 percent right 60 percent of the time. AGIL models don’t need a high winning percentage to make money. If you have a 1:2 or 1:3 risk/reward ratio you can make large returns as long as you don’t have any big losses.
Example of a 1:2 risk/reward with a 60% win rate:
Example of a 1:3 risk/reward with a 60% win rate:
It is the magnitude and frequency of both wins and losses that determine profitability not just win rate.
And last but not least –A final sprinkler of the sauce – our belief that
A small edge can make a lot of money over the YEAR as long as you keep the losses small.