🎯 A chilling thought: Discussing the relationship between Position, win rate, and risk-reward ratio.

►First, let me ask a question:
If a person has a win rate of 50%, earning 90% when they win and losing 50% when they lose, do you think they can make a profit?

Don't you think with such a good profit-loss ratio, it should be profitable?

Don't worry, let's do some calculations:

Initial capital of 10,000, first earn 90%, becomes 19,000;

Then lost 50%, leaving only 9500;

Earn another 90%, turning it into 18,000;

Another loss of 50%, leaving only 9000.

The result is obvious: the account net value is gradually decreasing.

⚠️Look, it clearly seems that the profit-loss ratio is very attractive, but the funds are still at a loss. So where does the problem lie?

►How about we try a different approach and reduce the Position? What if we lower the Position to 10%?

Let's take a look at the results:

First profit +9%, funds reached 10,900;

Then lost 5%, still 10,335;

Earn another 9%, turning it into 11,286.

⚠️Did you see? The win rate and profit-loss ratio have not changed at all, but the net value is increasing.

📌 Conclusion:
Many times, it's not that your system is ineffective, but rather that the position is too large, which amplifies the results. As long as the position is reduced, the outcome could be completely different. As the saying goes, "slow is fast."
In trading, what is referred to as slow is not about slow reactions, but about understanding how to control positions, patiently waiting, and moving forward steadily; whereas what is referred to as fast is not about blindly pursuing huge profits, but about achieving a longer and more stable capital curve through long-term and steady accumulation.