 Hi, my name's Leon Rowe, Covenancy Trader and Trading Coach at trading180.com and in this video I'm going to be talking about the forex trading edge, what really is a forex trading edge and basically the myths surrounding high win rates and success. Now again, there's been a lot of talk about if you go online, obviously, you know You see that in order for you to have an edge in a market Then you'd have to have at least a you know, 51% win rate But a 51% win rate does not mean you have an edge. An edge In the market is basically defined by your risk reward in relation to your break-even rate, so It's not awful when it comes to You know wanting to have high win rates because high win rates are Basically when we've as we've grown up, we've been told that success is getting high marks So when you're in school, you know to get good grades, you need to get you know, 80 90 percent 100 percent And we've grown up with that concept, but in trading it doesn't actually apply And I'm gonna basically show you why so 51% rate does not mean you have an edge So you might be thinking to yourself well, of course it is of course it does well if your risk reward is It is backwards basically if you're Risking for example Two pounds let's go to the chart Right, so if you're risking for example two pounds two dollars wherever wherever you are two euros and you're going for a only one pound reward then your break-even rate for you not to lose money you need a 67% Win rate and that's basically your break-even rate, right? So a 51% if someone said oh, I've got a 60% win rate, but they're Risking more than they're you know, they're they're target their profit target then 51% 60% win rate is is rubbish. You know, that's not an edge in the market I Would rather you know go for a two-to-one for example also a one-to-two Risking one pound. Yeah and going for two and if I can have a win rate of anything above 33% I Have an edge in the market. That's pretty much how it works. That is the true definition of an edge So if you're you know backtesting a strategy and you know, you're getting to a point where You know, you're seeing a 40% win rate at you know, maybe some sort of it You know like a one-to-one or something like that and you're like, okay Well, it doesn't work and you kind of you know throw it away and You know system hop and go for somewhere else how about backtesting and Seeing if you go for and going for a two-to-one or a three-to-one and see use this chart here and See what your win rate if you were to just go for a fixed two-to-one three-to-one four-to-one five-to-one You know rewards over risk and then see what your win rate is then if you're getting more than a 25% win rate and you're always going for a three-to-one then you have a trading edge. So Basically do not listen to the you know the Online so-called gurus out there who are telling you are trying to sell you a system and telling you 80% win rate and stuff like that Win rate alone is nothing You need to know your risk reward your break-even rate and then once you know that then you have a trading edge So thank you for watching and I hope this helps and take care