High WinRate & DD or Low WinRate & DD?
If you had to pick, which type of trading strategy would you prefer to trade for you? Option A: You make 5% a month consistently 11 out of 12 months of the year. But every year there's one day where you lose -90%. - Winrate: 90% - MaxDD: -90% Option B: 6/12 months are negative, but maxDD rarely exceeds 30%. Sometimes losing streaks lasts weeks or months on end, but 1 or 2 big wins make up for it. - Winrate: 40% - MaxDD: -30%