What is the win rate of a trading strategy, and is higher always better?

Trading strategy's win rate refers to the proportion of profitable trades to the total number of trades executed. Generally speaking, a higher win rate implies that the strategy has generated more profitable trades in history, which may indicate its effectiveness to some extent.

However, a high win rate doesn't necessarily mean high profitability or outstanding performance. This is because win rate does not take into account factors such as profit/loss ratio and trading costs, which are equally important. For example, a trading strategy may have a high win rate but only a small profit per trade, while losses are infrequent. In this case, the overall profitability of the strategy may not be ideal.

Therefore, when evaluating a trading strategy, win rate is an important indicator, but other factors such as Sharpe ratio, profit factor, and maximum drawdown should also be considered to provide a more comprehensive assessment of the strategy's performance and risk level.