Source
r/Forex•
sub-hunter

Low win rate but still profitable?

I’m currently doing the FTMO challenge. It’s interesting to see the exact statistics on my trades. However my win rate is not that high (just under 40%) but my average RRR is 2.98 I seem to be profitable (expectancy is 250) - but other than a few minor changes to my strategy for improving my win rate, is this sustainable?

I manage risk fairly well and keep tight stop losses so if the trade doesn’t go my way immediately I get stopped out.
I don’t want to extend my stops but other than waiting for a slightly better setup I’m not sure how to improve win rate or even if I need to since I’m profitable.

Thanks guys- happy trading

Posted Sep 14, 2020, 10:54 AM UTC

1421
whyislifelikethis__•

Yes,a win rate doesn't dictate profitability,i mean obviously it's a factor combined with risk to reward

If you're able to do that consistently it's pretty good and well over time you may be able to improve your strategy

9
dracodylan•

Its sustainable if you cut the losers short and let the winners run, which you already do, good luck!

5
Sztokholm•

The question is, if your system delivers similar edge to the data gained in your backtesting phase (you did extensive backtesting right?).

If yes, I would be probably afraid to tweak it during an FTMO challenge. The risk is you will make things a lot worse.

If not, then just play by your book anyway. Any change during this short term challenge, would be counting on pure luck imho.

Crossing fingers for the challenge!

3
sub-hunterOP•

I have done a fair bit of back testing though I don’t find it to be as reliable as actual trading because there are things the candles do in real-time, they do not do in back testing. (The way top and bottom wicks form on the current candle) I was not planning on making any changes to my strategy until I passed the challenge. But I want to be the best trader I can be.

3
[deleted]•

Is there indirect marketing for FTMO or what? Because there's been a lot of posts about this "FTMO challenge"

3
John_Doedee•

I thought the same thing at first but I don't think so, all the profiles with these FTMO posts aren't new accounts. FTMO could possibly give you the opportunity to become a full time trader so that's probably why a lot of people post about it

3
[deleted]•

Fair enough.

2
sub-hunterOP•

Not that I know of. I wish they were paying me to market for them. I’ve had a few questions about it so it might of been me making the noise.

I looked into a number of other prop shops and they all seemed like they were reasonable as well. I think I went with ftmo out of laziness tbh

1
bono_trade-avenue•

Short answer? Yes!

3
AntiVi•

One thing that some people might have issues with when having a lower win rate is the emotional strain of winning less than losing even if you're making profit. Some people can't handle that but if you're doing it properly then I see no issues with it.

3
sub-hunterOP•

Well if 4 trades go against me in a row I call it a day. If I’m profitable I get more aggressive and increase lot size and once the big run happens I call it a day. I find this helps with the mental side

2
KrawlinInMySkin•

Leave it as it is. Your system is giving you positive expectancy and godly R:R (I wish I could make 3 R:R consistently), I don't find any reason to take the risk of making it worse.

3
fuadik88•

My goal is to be quite wealthy by prop trading, then invest my money in prop trading firms to have passive income. Perfect cycle fuck I need to live this life.

2
CD_GG_FX•

You can invest in prop firms? I'm sure my $500 is going to be plenty for them.

2
fuadik88•

If you see prop firm gives 50/50 profit share, probably they've investors that funds prop firms. You earn by trading, take 50%, and the rest 50% is investor's and prop firm's earning.

2
fuadik88•

Prop firm acts as referee that supervise trading activity of funded trader.

2
CD_GG_FX•

Ahh. That's a good way to put it. What if I invest in a prop firm, AND trade for a prop firm? Then I get to keep more profits! Lol.

2
tomkendal•

I agree that a high win rate doesn’t always mean profitability. It is just a factor combined with other factors that helps.

2
xxPoLyGLoTxx•

Richard Dennis had a win rate of only 5% yet made around 400 million dollars. How? His losses were very small, and his wins were monsters.

1