If you make make 100 Trades with a starting amount of $100. The order of the wins and losses doesn't matter.
You lose 1% each time on 74 of those trades.
You gain 3% each time on 26 of those trades (compounding the principal).
You will finish up 2.5% even though you've been wrong 74% of the time.
Now if you think to yourself. I'm better than that I can improve my results.
So we'll say you're still wrong 74% of the time but you manage to pick better winners and hold them longer and you make 10% on each winner.
You will return 460%.