Point taken. Personally, anything below 40% is too low psychologically. And, as they say, the largest drawdown is always ahead of you. A drawdown of 10 trades x $200 each is tougher to deal with than 2 trades x $1000 each (at least for me). However, I can't help but think a 25% system would show the same deterioration signs as a 75% system. You should see a deviation from historical results the same way with either system. Assuming they have the same expectancy and you, as a trader, don't care about the win rate, implimentation, trading, and monitoring of one should be no different than the other.
In your case, only magic will work well. BTW What is "MONEY MANAGEMENT"? This is one of fuzziest pop terms on ET. In fact, it means nothing at all unless you give it a precise meaning.
They will show the same degradation, but one needs more time to be statistically identified as such. If my backtesting says that historically my 65% system has already showed a string of 10 losses, after a string of 15-20 losses, I would start wondering if something bad is happening to me. With a 25% system, that longest string should become 36. I would then need to wait about 55 losses to have the same 'certainty'. It's even more difficult (and especially psychologically) if you don't just consider string of consecutive losses, but samples with a high percentage of losses (like 20 out of 30 for example).
This is a trick question what style are you trading? Do you take overnights? What kind of size? You canât day trade with a 50/50 payout. Itâs not worth the time and money management wonât matter because you will have to do crazy things to make money. It also comes down to commissions. Now if you have a good commission along with a good payout yes money management can help a lot. Also you are the money management method there is not proven study that will make you make money if you do this and do that.