A fan brother asked me how to ensure winning rate and return rate under high trading frequency? In fact, this is the impossible triangle in the cryptocurrency circle. (II)

🔶Definition

Winning Rate: The ratio of the number of profitable trades to the total number of trades. A high winning rate means that your accuracy in each operation is relatively high, but this usually requires more in-depth market analysis and higher market prediction ability.

Trading Frequency: The number of trades you make in a certain period of time. High-frequency trading can increase potential profit opportunities, but it also increases the risk of making mistakes and trading costs (such as commissions, fees, etc.).

Return Rate: Your investment return rate, which measures the appreciation of your investment over a certain period. A high return rate usually means accepting higher risks, especially when pursuing high returns in a short time.

Summary

If you pursue a high winning rate, you may need to reduce trading frequency, as strategies with a high winning rate often require higher market conditions or signal accuracy, which may lead you to miss some trading opportunities and thus reduce trading frequency, but doing so helps maintain or improve return rate.

If your trading frequency is very high, to maintain or improve return rate, you may need to take on higher risks, which may lead to a decrease in winning rate, as you will encounter more uncertainties and market volatility.

If your goal is a high return rate, you may need to find a balance between winning rate and trading frequency. High return rates may require you to sometimes take risks on trades with lower winning rates, or increase trading frequency to capture more market opportunities, but this will increase costs and risks.

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