Subscribe to my YouTube Channel HERE.

Systems that use “bad” reward to risk ratios are great.

There’s no reason a trader should ignore them.

In fact, these systems might be the best way for many traders to trade. Why?

Bad reward to risk systems almost always have a very high win rate.

And high win rates keep traders in the game. And produce fantastic Equity Curves.

So, what’s the problem?

One problem is execution. If your broker doesn’t have tight spreads, then a small winner can turn into a non-winner. That’s not good. If we’re going for small wins, we need as much of that profit as possible.

The other problem is the stoploss.

When one loser takes out several winning trades, that’s very hard to deal with emotionally.

When a handful of big stopouts take out a ton of winning trades, that’s hard to deal with mathematically.

It can lead to huge drawdowns.

If the win rate doesn’t stay high in the instrument you’re trading, you can find yourself in a hole.

Execution and a dwindling win percentage can really put a fly in the ointment.

But there’s a way around that.

It’s simple yet often ignored.

And the solution is this:

Trade them all.

Trade a bunch of instruments at the same time.

Yes, maybe the execution is poor from time to time. It probably won’t be poor for all of the instruments all of the time.

And, yes, maybe one instrument’s win rate drops for a while. If so, all the others can keep winning and make up for that.

And, lastly, maybe these factors will combine into making live results not as good as the backtest.

The response?

So what.

High win rate systems win so much that it may not matter if the results in real life aren’t identical to the testing.

For example, what if the backtest shows a 125% gain in two years and you only get 100%. Does that mean you sulk and throw the whole thing out?

Of course not. The lower results would cause most traders to throw a party.

Take a look at this.

Using Portfolio Architect, here’s a portfolio of 13 Forex currency pairs trading 1 lot using the original Heron 15-minute settings from 2020-2023 on a hypothetical $15k account.