Disliked{quote} It's always hard to narrow trading down to percentages in such a general way comes down to method. While I think what Z's point is that each individual trade while it should be based on an edge we know we have historically once you click buy/sell we Never know for 100% sure where price is going to do. Instead what we know is that based on our methods in the LONG run we have an edge so we trade and go with that. It's entirely possible to have 90% + winning trades and be both a winning or a losing trader. Too many people wrongly focus on both...Ignored
The reason I was thinking about R:R and win rates is because if a trader plays a method for a lot of trades (or is backtesting his method for a lot of trades) he has a win rate and an average RR ratio. He can use these numbers to increase his risk with some formulas like the Kelly criterion (or use fractions of Kelly) or the risk of ruin calculator if he wants to use a fixed amount every time. What I noticed is if a trader wants to risk a bigger % it's better to have a higher win rate (even if he has a lower RR) than a lower winrate. Of course you must have a big sample to estimate your probability to win and your average RR.