Continuous Cash Flow — this is the key.
Winrate is not important. Thing which is most important is good enough frequency of setups with risk:reward good enough to achieve brekeven & also assure profits over & above capital risked inspite of losing some capital in transaction charges & loss making trades.
Lousy trading winrate of less than 50% is also fine, but closing a day, week, month in a loss is not at all fine. Cash positive day winrate is the one which counts.
If all of above combined ensures a profitable, cash inflow type of days on consistent basis, that’s what is desirable. This type of method is scalable.
Some systems are for day timeframe, some for short timeframe, some for longer positional type playes.
But on aggregate basis if cash positive day in year is in excess of 90–95% of trading days, then the entire system becomes massively scalable.
As a trader this is what we want, a cash flow machines which throwes out cash on consistent basis & which can be scaled up to almost unlimited size.
Trading is not for glory or financial freedom or boasting, it’s useful for its cash generation capacity which could be deployed elsewhere where Value is present in really longer timeframes.
Putting my thoughts in Medium in order to crystallize business plan for trading, investing & life.