winrate Archives - Trading Rush

I made two thousand trading bots take 2000 trades at the same time.
Why?
To see if a low win rate is better than a high win rate strategy.

My Trading bots are divided into two groups
One thousand bots will take a thousand trades with a 75% win rate.
Another thousand will take trades with a 41% win rate.
These charts show their account balances.
The high win rate group is using a 0.5 to 1 reward-risk ratio.
The low win rate group is using a 2 to 1 reward-risk ratio.
With these ratios, both groups have around an 8% edge.
Where did I get these win rate and ratio numbers from?
From the testing videos I did on the Main Trading Rush Channel.
I told the high win rate group to risk 2% of the current account balance per trade.
Group B will use 1% of the account balance per trade.
Then, I made the simulation more realistic.
The win rate drops breakeven when the market becomes bad.
That happens most of the time, just like in real life.
At 100 trades, high win rate low reward group made more than 50% profit.
But Low win rate high reward group made almost 80% profit.
Both had the same maximum loss so far.
But at around 200 trades things changed.
The High win rate low reward took the lead while still keeping the max loss lower.
At 500 trades, high win rate low reward had 240% highest profit.
Low win rate high reward only had 201% profit.
But that’s not what I really want to show you.
Look at the maximum number of losing and winning trades in a row.
Low win rate high reward group lost 28 trades in a row at some point.
But High win rate low reward group only lost 13 in a row.
That’s a big difference.
Low win rate high reward only won 11 trades in a row.
But high win rate low reward won 40 trades in a row.
That’s a big difference again.
The profits made by both high and low win rates were pretty much the same in the end.
Even the highest loss made was pretty much the same.
But there was a massive difference in the losing and winning trades in a row.
Why is this important?
A big losing streak can affect your trading psychology.
Think about it!
The high win rate low reward gave the same profit potential.
But has a way lower probability of a big losing streak.
If you are not getting a big losing streak, then your trading psychology is not getting messed up.
More than 60% of trading success is based on your trading psychology.
With High Win Rate Low Reward, you are making the exact same profit without messing up your psychology.

Get App

Patreon

YouTube

Tag: winrate

I will show you how to make up to 17 percent more money next week by the end of this video. You probably heard some trading guru recommend trading in the direction of the higher timeframe trend. Well, I ran two trading bots for an entire week to see if trading in the direction of the higher timeframe trend actually makes more money and increases your win rate. To make life easier, I also made a Trend Finder Tool in the last month that we will use to find the trend direction of multiple timeframes at the same place.

I told the first trading bot to only look at the trend direction of the entry timeframe and take the trade. Then I told the second trading bot to use the New Trend Finder Tool, and only take trades if the entry and higher timeframes show the same trend direction. The results were pretty amazing as you will see!

Day 1, the first bot made money and got a win rate of 64%. The trading bot with the Trend Finder tool on the other hand, took fewer but higher quality trades and got a win rate of 75%.

Day 2 was a bit slow. The first bot who only looked at the trend direction of the entry timeframe got a 58% win rate. And the bot who also looked at the trend direction of the higher timeframes got a win rate of approximately 64%.

And then the market started ranging on the third day, and this is where the real test began. For the entry signals, since the trading bots were using the highest win rate Trading Strategy we have tested 100 times on the Trading Rush Channel, the win rate was pretty good with a 1 to 1 Reward Risk Ratio. The win rate with the Trading Rush Trend Finder Tool was around 5 and up to 10 percent higher.

But can trading in the trend direction of the higher timeframe will also make you more money and increase your win rate in the range market?

Range Day 1, Both Trading Bots made around 2000 dollars. They lost money at the start, but then the loss was quickly recovered. Overall, trading with or without looking at the trend direction of the higher timeframe didn’t make much of a difference on the first day.

But on Day 2, the trading bot that only looked at the entry timeframe trend was down almost 7000 dollars. On the other hand, the Trading Bot who also looked at the higher timeframe trend only lost around 3 percent. That’s absolutely amazing. And remember, this is how bad the market is ranging. It’s all garbage, and choppy for the most part.

On Day 3, not looking at the higher timeframe had cost the first trading bot almost 10000 dollars. Whereas the bot who also analyzed the higher timeframe trend only lost 1 percent more on the third day.

But then something very interesting happened on Day 4, looking only at the entry timeframe had cost the first bot 16 thousand dollars. That’s a big loss, right? But what’s more surprising, is that the bot that also looked at the higher timeframe trend made more than 5 thousand dollars on the 4th day. It was now sitting with almost a 2 percent total gain. That’s a big difference! Minus 16000 dollars versus plus 1600 dollars.

On Day 5, the difference was negative 15000 dollars versus more than 2500 dollars in profit. After all the running trades were over, there was a 17 thousand dollars difference between the bot that only looked at the entry timeframe and the bot that used the Trend Finder Tool.

The win rate with the Trend Finder was 13% higher. So trade in the direction of the higher timeframe trend and use the Trend Finder Tool to make more money. After all, you don’t want your profit graph to look like this. That’s all!