About this episode
Trading systems have different accuracy rates and ratios between winners and losers.
Knowing these ahead of time might better help you determine which is most suitable for you - at least to start with.
A trend following model might have 30% winning percentage with winners being 3 times the size of the losers.
A chart reading model might have a 70% winning percentage, but a winner / loser ratio that might be smaller than 3:1.
Both can have a positive expected value of a trade, so they can be worth following.
One might be a better fit for you although both are expected to make money.
Of course, knowledge of yourself first is the best way to evaluate trading rules when determining compatibility.
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