The core of the trading system can be simplified as: Expected Return = Average Profit - Average Loss. Taking three roles as examples:
1. Retail Investor win rate 45%, expected return is 0.45×1.5 - 0.55×1 = 0.125
2. Ordinary Trader win rate 50%, expected return reaches 0.5×1.5 - 0.5×1 = 0.25
3. Professional Trader win rate 55%, expected return is 0.55×1.5 - 0.45×1 = 0.375
It can be seen that for every 5% increase in win rate, returns grow exponentially: from Retail Investor to Ordinary Trader, the returns double, and then to Professional Trader.
The increase in expected value compared to Retail Investors is 200%, highlighting the significant gap between different levels of traders.