"Should you trade with high reward or high win rate?"
This is one of the most common questions in the trading community — and the truth is, there’s no one-size-fits-all answer.
That’s because this decision depends a lot on your trading style, personality, and how you manage risk. In this blog, we’ll walk you through the pros and cons of each strategy so you can decide which path makes more sense for you.
⚖️ Quick Comparison: High Reward vs. High Win Rate
| High Reward | High Win Rate |
|---|
| Definition | Take small risks for the chance to earn big rewards | Most trades win, even if each win is small |
| Reward:Risk | 2:1, 3:1, 5:1 or higher | Often 0.5:1 or lower |
| Winrate needed | 25–40% winrate can still be profitable | 60–80% winrate or more |
| Best for | Trend traders, swing traders, patient traders | Scalpers, day traders, quick decision-makers |
| Psychology | Need patience and mental strength to handle losses | Easier on the mind with frequent wins |
1. High Reward Trading
Concept: You risk a small amount to aim for a much bigger return. For example, risk $1 to potentially earn $3, $5, or even more.
✅ Pros:
You don’t need a high win rate to be profitable
Example: If you trade with a 3:1 reward:risk ratio, you only need to win about 3 out of every 10 trades to break even. Win 4 and you’re already ahead.
Let’s say you take 10 trades, risking $100 each:
- You win 3 trades → each brings $300 = $900 total
- You lose 7 trades → each loses $100 = $700 total
→ Net profit = $200
Less pressure to win every trade: You don’t need to be “right” all the time — just a few strong winners can carry your results.
Perfect for trend-following setups: You can let profits run using trailing stops and catch big moves.
❌ Cons:
- Lower win rate: Many trades will hit stop-loss before the winners arrive.
- Psychological pressure: Long streaks of losses can mess with your confidence and discipline.
- Requires patience: You need to wait for strong setups that offer big potential.
Best suited for: Traders who are mentally tough, don’t mind small losses, and are okay with being wrong often, as long as the winners are big enough.
2. High Win Rate Strategy
Concept: Most of your trades are winners, but each win tends to be small compared to the risk you take.
✅ Pros:
- Smoother mindset: Winning frequently feels good and keeps your confidence high.
- Great for fast-paced strategies: Perfect for scalping or intraday trading — aim for quick gains from small price moves.
- Steady account growth: A series of small wins can give a sense of stability and progress.
❌ Cons:
- Lower reward:risk ratio: You may risk more than you earn on each trade. For example, risking $100 to earn $50.
- One big loss can wipe out many wins: If you’re not careful with stop-losses, a single bad trade can undo a lot of hard work.
- Requires precision: You need to be highly accurate with your entries and exits, not much room for error.
Best suited for: Traders who like frequent feedback, are disciplined with risk management, and can react quickly in fast markets.
So… Which one should you choose?
There’s no “better” strategy. The best strategy is the one that fits your trading style and gives you positive expectancy over time.
Here’s a simple formula to calculate expectancy: E = (Winrate × AverageWin) − (Lossrate × AverageLoss)
If E > 0, the strategy can make money in the long run.
Every strategy has a cost. There’s no perfect method.
- High reward? You’ll lose more often, but when you win, it’s big.
- High winrate? You’ll win often, but have to manage your losses like a hawk.
At the end of the day, you want a method that keeps you consistent, calm, and profitable, not just excited for a few trades then frustrated the next week.
That said, many experienced traders gradually lean toward high-reward strategies over time. The ability to let winners run, manage small risk, and not stress about being “right” every time… that’s powerful.
If you choose high reward trading...
We recommend checking out Super JumpBoo$t.
This indicator is designed specifically to help traders capture big Reward:Risk trades up to 2:1, 3:1, 5:1, even 10:1 setups.
