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📉 Why Fewer Trades Often Produce Higher Returns

6 January 2026, 07:30

Issam Kassas

104

📉 Why Fewer Trades Often Produce Higher Returns

🎯 The Lesson

More trades feel productive.
But productivity in trading is not measured by clicks —
it’s measured by expectancy per unit of risk.

Professional traders make more money by trading less, not more.
They remove low-quality trades, reduce randomness, and let capital work only when conditions are favorable.

⚙️ 1. Every Trade Carries a Cost

Each trade pays:

spread
commission
slippage
execution risk
opportunity cost

Even a “small” trade has friction.
When you trade too often, these costs compound and quietly eat your edge.

Fewer trades = fewer leaks.

📊 2. High Trade Frequency Increases Randomness

Low-quality trades usually come from:

boredom
overconfidence
chasing moves
trading inside ranges
trading during low liquidity

These trades have negative expectancy.
Cutting them out immediately improves results — even if your win rate stays the same.

🧮 3. Expectancy Improves When Trade Quality Improves

Expectancy formula:
Expectancy = (Win Rate × Avg Win) − (Loss Rate × Avg Loss)

By trading less:
✔️ win rate increases
✔️ average win increases
✔️ average loss stays controlled

Example:

60 trades/month at +0.1R = +6R
20 trades/month at +0.4R = +8R

Fewer trades → higher total return.

📉 4. Fewer Trades = Lower Drawdown

Each trade is a chance to lose.
More trades = more exposure to losing streaks.

Reducing trade count:

lowers drawdown
stabilizes equity curve
improves recovery speed
reduces emotional fatigue

This is why professional equity curves look smooth.

🔁 5. Use a Trade Filter, Not More Indicators

Instead of adding indicators, remove trades by filtering:
✔️ trade only in HTF direction
✔️ avoid low-liquidity hours
✔️ avoid news windows
✔️ avoid tight ranges
✔️ avoid marginal R:R

If a trade doesn’t clearly meet criteria — skip it.

Skipping trades is a risk decision, not a missed opportunity.