Thought you might agree.
🙂
Jungerns,
Very few of these things are absolute.
Take for example a high strike rate. Is that good or bad?
I would say that one cannot tell. Most people might at first glance prefer a hit rate of 70% to 35%. But there will be people who operate successfully with both. The 70% might result from a scalping strategy that produced an average net profit of 0.7 R per winning trade and an average loss of 1R per losing trade. Over a series of 100 trades on average one would lose 30R and win 49R, meaning a net gain of 19R.
The 35% might derive from a low probability reversal strategy (otherwise known as a reversal strategy
😆). Average net profit 4R, average loss 1R.
Over 100 trades one would lose 65R and win 140R, meaning a net gain of 75R.
So presumably it is better to win 35% of the time, because you make more money doing this than you do by winning 70% of the time? Well, it depends.
With a 35% hit rate, you're going to have some prolonged and heavy drawdowns. If you can't cope with this, you're not going to execute properly, which means you will miss the big winners necessary for the strategy to function. So which is better might not be to do win win rate or profitability, but rather to do with one's personality.
Going further, the scalping strategy is likely to produce many more trades than the reversal strategy. Some people are unable to sit on their hands sufficiently to employ strategies of that nature.
One could go on, but the point is that it is rarely a matter of black or white. It depends upon many variables.