LEARN/MYTHBUSTERS

Trading Mythbusters.

The industry's favourite beliefs, tested with arithmetic and simulation. Some survive. Most don't. Each verdict shows its working, so you can check the math instead of trusting us.

MYTH 01

Myth: A High Win Rate Means a Profitable Trader

A 90% win rate that loses money vs a 35% win rate that compounds. The expectancy arithmetic, the breakeven curve, and why win rates are the most-marketed and least-meaningful number in trading.

Win rateExpectancyR:R
MYTH 02

Myth: More Trades = More Profit

Five selective trades a week vs twenty-five forced ones — same method, same risk. Volume multiplied costs and dilution, not edge. Why trading is the profession where declining work is the work.

OvertradingCostsDiscipline
MYTH 03

Myth: A Wider Stop Gives the Trade Room to Breathe

Widening stops raised the win rate from 45% to 58% — and cut the median account by more than half. The memory asymmetry that keeps this myth alive, and the legitimate fix it hides.

StopsRiskPsychology
MYTH 04

Myth: A Good Backtest Means a Good System

Test 200 random strategies and the best one wins ~59% with zero edge — that is arithmetic, not skill. Overfitting, ignored costs, look-ahead and regime change: why beautiful curves fail live.

BacktestingStatisticsOverfitting
MYTH 05

Myth: Averaging Down Is Just Buying at a Better Price

Adding to a loser raised the win rate from 33% to 73% and changed expectancy by exactly zero — while turning a 1R loss into a 3R loss and adding seven points of drawdown.

Position sizingExpectancyRisk
MYTH 06

Myth: Leverage Is How a Small Account Grows Fast

One real edge at nine risk levels. Past about 3% per trade the median account gets worse, not just riskier, because every account has a drawdown line and leverage decides how fast you reach it.

LeverageDrawdownPosition sizing
MYTH 07

Myth: Three Positions Means Three Trades

ES, NQ and YM at 1% each is not three 1% trades. At the correlations these instruments actually run it is 1.11 independent bets — and all three lose together 42% of the time.

CorrelationRiskPortfolio

All results on these pages come from Monte-Carlo simulations with stated rules — educational illustrations, not trading records and not investment advice.

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