Why do I lose in FX automated trading even with a high win rate?

Because even with a high win rate, if a single loss is much larger than a single win (poor risk-reward ratio), total assets will decrease.

What is 'expected value' in investing?

It is a metric that calculates the average expected profit over repeated investments, based on the balance between 'win probability x average profit' and 'loss probability x average loss'.

What are the features of Phoenix PRO?

It is an EA designed based on expected value, not chasing short-term high win rates, and achieves stable capital protection by excluding emotions through automatic profit taking and automatic stop loss.

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Why you 'cannot win even with a high win rate' in 'FX Automated Trading'... The 'Number Trap' that many investors misunderstand

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AI Summary (NQ-processed)

This article explains the pitfall of focusing solely on the win rate in FX automated trading, emphasizing the importance of risk-reward and expected value, and introduces the 'Phoenix PRO' EA designed on these principles.

AI Analysis

Frequently Asked Questions

Q: Why do I lose in FX automated trading even with a high win rate?: A: Because even with a high win rate, if a single loss is much larger than a single win (poor risk-reward ratio), total assets will decrease.
Q: What is 'expected value' in investing?: A: It is a metric that calculates the average expected profit over repeated investments, based on the balance between 'win probability x average profit' and 'loss probability x average loss'.
Q: What are the features of Phoenix PRO?: A: It is an EA designed based on expected value, not chasing short-term high win rates, and achieves stable capital protection by excluding emotions through automatic profit taking and automatic stop loss.