I've noticed that many traders get fixated on a single indicator and forget the main thing. We're talking about the win rate — the percentage of profitable trades out of their total number. It sounds simple, but that's only half the story.

Let's figure it out. The win rate is calculated by the formula: the number of winning trades divided by the total number of trades, multiplied by 100. Suppose out of 50 of your trades, 30 ended in profit, and 20 in loss. You get 60%. It seems pretty good. But here's the catch: a 60% win rate doesn't guarantee profit.

Why? Because everything depends on the size of wins and losses. I've seen traders with an 80% win rate who still blew their deposit. How so? Because they won often, but small — about $10 per trade. And when they lost, they lost $100. Simple math: 80 winning trades at $10 each = $800, but one big loss of $500 — and now you're in the negative.

That's why you need to look at the risk-reward ratio. This indicator shows how much you earn on average relative to how much you risk. If the win rate is 50%, but the risk-reward ratio is 1 to 2 — you're in profit. If the win rate is 80%, but the risk-reward ratio is 2 to 1 — you're in the negative. That's basic arithmetic.

How to improve your win rate? First — keep a journal of all your trades. Analyze your mistakes, look for patterns. Second — trade according to a clear strategy, without emotions. Third — only enter trades with obvious signals, don't guess. Fourth — avoid trades with poor risk-reward ratios, even if it seems like "it's about to go in the right direction."

In practice, the win rate is a calculated indicator. You need to download your entire order history, count how many closed profitably, and apply the formula above. Some use third-party tools for statistical analysis or APIs for automation. But the main thing — don't get fixated on one number. Look at the full picture: win rate plus risk management plus capital management. That combo works.

By the way, currently BTC is trading around 77.63K with weak momentum. If you're analyzing your trades on such flat sections, it's a good moment to work on your strategy.