Win Rate vs Profit: What Really Matters in Trading Performance

Look at these two trading systems:
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 System One:​
Makes £100k per quarter.
Win rate = 5%.
That’s 19 losers out of 20; strings of 50+ losses are common, but the few winners cover it all.
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 System Two:​
Makes £95k per quarter.
Win rate = 98%.
You win 49 out of 50 trades. Almost every trade is green.
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​Which one do you take?
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​Most traders pick System Two.
Even though it makes £5k less.
Why? Because the ride feels smoother.
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And that’s the thing.
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Losing streaks hurt. They chip away at confidence. You doubt the system. You meddle with size, stops, triggers.
You feel like you’re doing the right thing, but often make it worse.
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A lower win rate can be tough on the mind.
A high win rate? Dopamine on tap!
Smooth equity curve. Easy to keep going.
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​And real-world trading isn’t always about the spreadsheet.
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​Someone who’s never traded will never get why you’d “choose” to make less money.
But if it keeps you executing well? It’s worth it.
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Optimal on paper doesn’t always equal optimal in practice.
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So before you say:
​“I’ll hold longer… make more… even if my win rate drops…”
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​Remember, it’s always a trade-off.
There’s a middle ground.
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Yes, P&L matters most… but there’s a point where the extra stress just isn’t worth the extra cash.