A friend asked me whether win rate or risk-reward ratio is more important.

Regarding this question, from my understanding, the question itself is problematic. Whether it's win rate or risk-reward ratio, ultimately we aim to achieve high returns. There is no 100% win rate in the market. If every trade is profitable, then having a win rate over 70% is sufficient. However, if the win rate is high but each win is small and losses are large, then overall it could still be a loss, which makes it meaningless. Top traders' trading systems are usually characterized by low win rates but high risk-reward ratios. Some can make 10 trades, losing 9 and winning 1, but that one winning trade earns more than the combined losses of the 9 losing trades. That is valuable!

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