Minimum risk-reward filters: what's your floor?
A minimum RR filter skips any trade whose target doesn't offer at least the required multiple of the risk. The floor protects expectancy — and quietly kills half the setups you'd otherwise take.
What's yours?
- the minimum RR you require
- how the filter changed your trade count and results
- the setup class that never clears your floor
The risk-reward guide explains the floor's maths.
Background: Risk-reward ratio, win rate and expectancy: the maths behind a trading edge
A high win rate can still lose money. See how win rate and risk-reward combine into expectancy, with break-even win rates and worked examples.
What is a good risk-reward ratio in forex?
There isn't one right ratio. What matters is expectancy, the win rate and ratio together. A 1:2 ratio breaks even at about 33% winners before costs, while a 1:1 ratio needs 50%.
How do you calculate trading expectancy?
Multiply the win rate by the average win and subtract the loss rate multiplied by the average loss. Measuring wins and losses in multiples of the amount risked (R) makes the result easy to compare.
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