Yes, but is it NOT the percentage I am right that makes it profitable. You can be right 80-90% of the time and still have a loss in the end. I've seen this for myself. I have a forexbot with a hit ratio of 85% but it is not profitable because the losses are so much bigger than the wins.
With my method it is easy to have bigger wins than losses. That is all that counts ;-)
Absolutely.
I've read from several different sources that even the most successful traders are only right about 30-40% of the time. What makes them successful is knowing when to cut a loss (quickly and without emotion) and knowing how far to let the winning trades run before taking profit.
One of the strategies I've seen was by a Forex trader who uses a 3:1 rule for successful trades vs losing trades. So a simple example would be--If one bought a currency or stock or whatever at price "P", they would set a stop loss at 0.99P (a 1% loss would trigger the stop) and set the target for profit at 1.03P (a 3% gain). This is just an example but it's similar in nature to you method (bigger profits than losses requires less winning trades to come out ahead).
On a side note, you're one of my favorite people that I follow in terms of trading and analysis. Keep up the good work :)
3:1 is very difficult to achieve in the longrun. I aim for 1,7:1 but I have had some awesome trades with 10:1 or 15:1 hit the target, but they are rare...