your favorite trading gurus always boast about their High win rate system and that should be a massive red flab telling you to keep away from them you are getting scammed welcome back everyone in this video I'm going to explain why High win rate systems are never and can never be profitable High win rates are the fastest way to lose first of all scammers deliberately create high win rate systems to deceive and fool naive Traders because they know that most new Traders automatically associate High win rate with profitability but High win rate systems are almost never
profitable you can create any win rate you like effortlessly if you want a 75% win rate have a stop- loss three times bigger than your profit Target if you make your stop- loss four times bigger you've just given yourself an 80% win rate if you use a one pip tape profit and a 100 Pips stop-loss congratulations you have a 99% win rate system but none of those are profitable if there were no trading costs of spreads or commissions the wins and losses would councel each other out and give a net zero balance but with spreads
and commissions all of those systems end in a net loss so win rate by itself itself is meaningless but it sure looks good if you're a scanner trying to entice glial nees to buy your course and it is safe to say that almost every single system you see promoted is using that basic strategy and they are a way waste of time but you might be thinking that surely some systems have a real Edge and are profitable what if they have a high Wing rate and the profit is greater than the loss well yes if that
was true the system would have a real Edge and it would be profitable and now I'm going to explain why that is almost impossible to achieve and none of the high Wim systems you see online have such an edge it all comes down to the reality of how the markets work it is a mathematical impossibility to be profitable over the long term in a random Market no one and no thing operating within the currently understood laws of the universe can beat a random Market that is an immutable fact another fact is that all markets are
mostly random and in Forex we know very accurately that 99.48% of all price changes are random and if we equate that to minutes it works out to mean that just less than 7 and 1/2 minutes on average in every 24 hours is nonrandom so any short-term intraday trading system taking multiple trades per day is definitely trading random prices and therefore definitely going to be a loser over the long term rat's really going to upset some people but it is an inescapable conclusion 23 hours and 52 and a half minutes in an average day is completely
random price movements so shortterm Inay Traders are gambling Pure Noise the mats behind this can't be argued with the fate durus and the system sellers can make all sorts of impressive sounding claims about their technical analysis and Laser guided sniper accurate high probability entries but drawing lines and looking at shapes on a chart of random data has no more ability to predict anything than looking at tdes predict the next role of the Dives random data is just that random that's why the high wi rate systems you see online are scammed mathematically it's impossible for them
to make money because they are trading random markets now quick caveat I'm not saying that high win rate systems aren't possible they are and I'll tell you two of them in just a moment what I'm saying is high win rate short time frame systems are impossible retail day Traders cannot have a high win rate and be profitable the two things are mutually exclusive to be profitable you either have a high win rate and almost never trade or you trade a lot and you have a low win rate but High win rates are possible Stanford University
carried out a robust study of the Forex market and they discovered that when there is an imbalance of more than 10 million in liquidity on one side of the market the next price tick would move in the direction of lease liquidity 81% of the time so in other words they had an 81% ring rate that's high by anyone's standards so have I just proved my own argument false no the imbalances of 10 million or more in liquidity don't happen often they may only happen once every 3 weeks and the price move they predict is one
tick one tenth of a pip that's fine if you're an Institutional firm with hundreds of millions to trade and you have the sophisticated algorithms capable of exploiting those kinds of micro price moves but it's of no use to a retail Trader and as I said those situations are not occurring several times per day they only happen very infrequently so you need to be very patient remember the markets are random 99.48% of the time so these predictable liquidity and balance necessarily can only happen less than half of a percent of the time in other words very
rarely another high windweight system is when interest rates diverge by large amounts for example when Japan has an interest rate of 0.25% and the US has one of 5% you have a very high probability of a large uptrend on the US dollar Japanese Yen pair you could predict a move like that with above 80% accuracy and there therefore have a high win rate system but those conditions and therefore the trading opportunities only happen once every 20 or 30 years so it may have a high win rate but it's not even close to being high frequency
Inay again predictable non-random markets are rare and infrequent that's the point I'm making the high wi rate day trading systems that are promoted by itself appointed expert selling things to you scams because they are mathematically impossible to be profitable you cannot be profitable in random conditions the irony is new and inexperienced Traders are always drawn to ingrate trading High Wing rates are the deao setting point of most systems and those new Traders inevitably lose and then they go looking for another system with an even higher win rate and of course lose again and then they
try to find an even higher Wing rate system they never realize that it is the high Wing rate that is causing them to lose the very thing they search for as the solution to their problems is ironically the actual cause of their problem it would be funny if it wasn't so sad so watch the solution it's actually very simple you have to leave your winning trades open for much longer time frames and I'm talking days at a minimum but preferably weeks or even months you can only profit from nonrandom markets and non-random markets happen very
infrequently and briefly and mostly unpredictably so you need to leave your position open long enough to be able to capture and exploit those non-random moments as and when they occur and accumulate them in your position I'll put a link in the description and the end screen to a video teaching a trading system that uses an exit strategy that perfectly does this for you if you want to be a profitable Trader that's the TR trade management and exit strategy to use I hope you find this interesting today if you have Please Subscribe if you haven't already
leave a comment and give it a thumbs up as all of that good stuff helps the channel grow and I will continue to put videos like this out as frequently as I can I really appreciate your support in the comments section let me know what topics you want me to cover or anything specific you want to learn I'll do my best to deliver in the meantime why not click to watch one of the other videos on this screen now thanks for watching I'll see you next time