Your win rate might be lying to you.

A 70% win rate sounds impressive.
But what if your average winner is only +0.5R, while your average loser is -2R?

You could win 7 out of 10 trades and still lose money.
That’s why win rate should never be analyzed on its own.

R-multiple shows how much you made or lost relative to the risk taken on each trade:
- +1R = gained what you risked
- +3R = gained 3× your initial risk
- -1R = lost your planned risk

And this is where expectancy becomes important.
For example:
40% win rate + 3R average win + 1R average loss = +0.6R expectancy per trade.

Meanwhile:
70% win rate + 0.5R average win + 2R average loss = -0.25R expectancy.
So the trader with the lower win rate can have the much stronger system.

Stop asking only:
“How often am I right?”

Start asking:
“How much do I make when I’m right compared to what I lose when I’m wrong?”

Read the full breakdown:
Why Your Win Rate Lies Without R-Multiple - BitStat

https://bit-stat.com/blog/win-rate-lies-without-r-multiple