In the past, there was always a misconception of pursuing win rates. Later, as I engaged in more trading, things gradually changed to pursuing R, which is the profit-loss ratio.

Because pursuing win rates means avoiding stop-losses, even having large stop-losses disrupts the profit-loss ratio, even causing it to flip.

On the other hand, pursuing R and net income has become more stable over time. With stop-losses, it no longer feels painful. This is a validation of my judgment. We use profit-loss ratios and probabilities to cover up the misjudgments of trends because misjudgments themselves are unavoidable. It’s about making the right trades rather than making correct trades. Over time, this has formed my current trading system.

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