Imagine that System A has seventy percent winning trades, making 30 pips profit on the wins and losing forty pips on the losses. System B has 40 percent winning trades, seventy pips up on the wins and 30 pips down on the losses.
System B will make a touch more profit in the long run, it will probably have runs of many losses in a row. This can be really tough to handle psychologically and could end in the trader losing trust in the system and quitting when he was down.
On the other hand it could also be hard to cope with systems that have large single losses. Another system that has 85% winning trades, making twenty pips profit on the wins and losing sixty pips on the bad trades, would also book a profit in the long run but just a couple of those sixty pip losses in a row can lead to high stress and bad decision making. If you only have a little window of time when you can trade, you could need a system that works well for a selected currency pair that is active at that time. There might be many factors like this to take into account when considering forex day trading techniques depending on your situation.
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