Printing Money
Maintaining a 2:1 reward to risk ratio at a 40% win rate, your optimal % gain vs. % loss is 20/10. Any LESS, you make less. Any MORE, you make less. You can learn more and read about optimizing your trading in my book.
The reality of my trading lives in 30% batting average. I cannot make money with 2:1 ratio. I need at least 2.7 ratio (or 3 frankly) to print money.
With 50% batting average and 2:1 ratio, it is literally printing money. Imagine with 3:1. Stick to 2:1 btw. No need to chase MSFT. Remember to take bigger size and turn it over and over with progressive exposure.
I’m wrong just as much as I’m right and I take MANY losses. But my losses are contained to less than my gains. My strategy by design doesn’t get into big trouble even being wrong more times than being right. And during periods when I run above 50%, that’s when I’m printing money.