The man regularly outwits far more supposedly cognizant opponents including Batman and Lex Luthor, who are canonically recognized as two of thr smartest people on the entire planet.
Edit: I’m not saying insane people are stupid, I’m saying that Joker’s mental illnesses are pretty obviously behavioral, they don’t affect his perception of reality. He’s perfectly capable of understanding what he’s doing and how it’s wrong, in fact his character almost doesn’t work if he doesn’t, he just thinks that it’s all hilarious anyways. That’s why I said he’s not insane, he just pretends to be, because he’d be fit to stand criminal trial as fully competent and cognizant of his actions.
Depending on the version you’re reading or watching, the Joker is almost always insane and a genius. Sometimes he’s homicidal, and sometimes he’s just mischievous, but his insanity is his superpower. It’s almost like hyper awareness, like he knows he’s in a comic book so he can bend the rules of his reality to fit his whims.
He gets over on Batman, and Luthor, because he is irrational and unpredictable.