Win rate versus risk-reward: what's your balance?

FTC Community TeamStaff98 views

A 70% win rate with 0.5R winners loses; a 30% win rate with 3R winners thrives. The two trade off, and the balance you can psychologically sustain matters as much as the maths.

Win rate versus risk-reward: what's your balance? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's yours?

  • your win rate and average R
  • how the balance fits your personality
  • the strategy whose balance you couldn't stomach
Win rate versus risk-reward: what's your balance? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide shows the trade-off explicitly.

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