I totally agree. My best system (or style of trading) has a Hit Rate lower than 50%, but the losses, while more frequent, are smaller (baring gaps) then my winners by a wide margin. I think win-rates can be “rigged” too much and give a skewed perspective on system profitability.

I agree with you about the usage of Stops (very system dependent), although I confess that I couldn’t trade without some level of Stop Loss (not a mental Stop either). Be it far enough away to let the trade “breath” (avoid being knocked out by market noise), but still present in case of a blow out.

You blogs are great. Keep up the great work.

~Keith