Yesterday, I specifically tested the win rate of mindless trading, with a risk-reward ratio set at 1:3. I made a total of 50 trades, at a one-minute level, with a win rate of 22%, just the kind of trading where you don’t understand anything, don’t look at trend signals, just go randomly based on intuition, and then set proper take profit and stop loss once you open a position.

The account lost less than 30%, and the risk-reward ratio is especially important, much more than the win rate. That’s why I say, as long as Maji keeps going long, with unlimited bullets, as long as you catch the bottom, you can recover previous losses after a few trades—that’s the principle of the risk-reward ratio.

If we talk about probability, a 50% win rate is possible, and even with technical understanding and good mindset, increasing the win rate to 50-70% is certain, definitely, and you can still make money continuously. The real challenge here isn’t the high or low win rate, but how precisely you can predict the entry and exit points for a 1:3 risk-reward ratio, because the market moves are self-generated, without any emotion, and not targeted at anyone. Our absolute goal to improve our ability is to only enter trades that achieve and maintain a 1:3 risk-reward ratio, and to profit from these trades while maintaining a high win rate. Of course, hitting stop loss is inevitable; win rate is secondary.

Besides unwaveringly executing the trading system, another difficulty is how to define the analysis cycle, trading cycle, and entry cycle properly. Without setting these correctly, it’s impossible to talk about a 1:3 risk-reward ratio.

It’s still recommended that before developing these abilities, don’t trade derivatives; even spot trading doesn’t make money. Using leverage will only lead to more and faster losses.