Had a good day today traded 6 races all profitable for a total profit of £85. Therefore I had a strike rate of 100% a perfect day. The reason I ask the question about strike rate is that the answer has to be no because strike rate is not important, it is that you make a profit in the long run e.g. you could lose 99 races then win on one that covers all those losses and still makes a profit alternatively you could win on 99 races then lose on one race that wipes out all of your profits and more.
However psychologically it feels better to have a fairly high strike rate so you frequently get the feedback that you are doing well. Confidence as a trader is very important and when it goes it can be very difficult to stay profitable and then keep your discipline.
Currently my strike rate is about 75%. Knowing this may help me to deal with my losing races. If I can expect to have a losing race about one in every 4 then hopefully I will be able to take the losing races and just move on confident in the fact that losing races are just part of the trading process. As long as I am profitable then losing races shouldn't matter.
Strike rate is only important in that you understand how it affects your betting - if I'm getting 1 in 10 winners backing 25/1 shots, then that's a fantastic strike rate... but the same rate is useless if backing even money shots!
ReplyDeleteGreat point! I completely agree with your philosophy here. Nobody can win every time. Being able to handle losses psychologically is very important.
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It just fuels my respect for those traders who calmly handle risk management with such huge stakes.
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