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🧠 Frequent Wins Can Hide Large Losses If you judge a strategy by how often it wins, a mean-reversion approach can look reassuring. Convergent strategies usually have high win rates, but those frequent wins come at the expense of large losses, so win frequency alone gives you an incomplete picture. A convergent trade assumes price will return to a mean: you buy below that mean or sell above it. The risk is that a new mean becomes established instead. Divergent strategies seek those breakaway trends and typically win less often, but their winners are multiples of their losers; a lower win rate alone therefore does not establish that a strategy is worse. Before favouring a strategy because it wins more often, check the size of its winners and losers alongside its win rate. Also identify whether the trade depends on a return to an existing mean or a move toward a new one, so you understand the assumption behind the trade. ✅ Trade on WEEX 💸

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