Can a Trading strategy have a win rate of 90%?
Yes, this is possible
The win rate by itself is irrelevant.
A 90% win rate strategy can lose you money.
A 20% win rare strategy can make you rich.
It all depends on the Risk management of the trade.
I have seen a 90% win rate on a strategy but only where the trader refused to close their losing trades, so these were not counted as losers. This of course is just juggling with numbers to make yourself look good.
one answer VSA. Learn about volume and trade with smart money
If the 9 wins are 1 pip, but the 1 loss is 9 pips, you’re not making any money.
But if 9 losses are 1 pip, and the 1 win is 20 pips, you’re doing pretty well.
I followed a fake trader who only closed the operation when it was in profit, with that he had a 100% hit rate, one day the price did not return to his favor and was stopped by the brokerage, losing almost all the money.
@ussama_ahmed Can you succeed with this approach, can you consistently earn money over time using the VSA?
I have no idea - a preoccupation over your win rate is 90% guaranteed to hinder your progress as a trader.
Successful traders have long given up the notion of having such a hit rate.
To paraphrase George Soros ’ it’s not how often you are right, but how right you are when you are right that counts’
While I am teasing you somewhat, you won’t succeed as a trader if you are scared of losing that is the only certainty in trading.
Hmmm. I agree with the responses on this thread. Now it makes me curious if anybody has offered to teach you such a strategy in exchange for money. If it’s too good to be true, chances are, it’s not legit.
Definitely sounds like an instagram “trader”
indeed you can volume can spot any suspicions activity, for an engine to run you need fuel and similarly volume enables the market to move.
for example, if the price is in an uptrend and volume is increasing with each candle and than you see a small candle with much higher volume what does it mean? high volume means if the buyers were active at that time the candle should be big and close higher but instead the size is small it can only mean one thing that sellers didn’t let the price go higher and they are more interested in lower prices. Hence giving you the opportunity to benefit from it.
if you are interest to learn more about volume you can read these books.
These are good books for any beginner
- investing with volume analysis by buff dormeier
2)A Complete Guide to Volume Price Analysis By Anna Coulling
These are good books for advance
1)Master the Markets by Tom Williams
2)Trading In The Shadows of smart money by Gavin Holmes
3)Trades About to Happen - David H.Weis
I think it might have 90% win rate, but such a strategy won’t be stay on the market for so long, mainly because such a win rate can’t be long lasting as I think. You will have to edit this strategy, because it’s impossible to have such a strategy for long period of time. In my opinion, traders always must be flexible in order to implement new strategies and create them to have a choice. For example, you see that your strategy don’t work anymore, then you have to use another one which you had created beforehand and which is also quite profitable. Nevertheless, there are some traders who claim that it’s useless to have more than one strategy.
It’s kinda difficult to create a special strategy which will provide you with 90% of winrate. Your strategy is quite good and it seems to me that it really can make a particular percentage of winrate, nevertheless it’s almost impossible to reach 90% of winrate as for me. If there would be such startegies, which can possibly generate this percentage of winrate, then there would be no losses at all. You have to understand that every trader will use this strategy differently. One can turn this strategy into a great lose streak. So, everything is pretty individual in terms of this strategy. Be careful with such statements.