❓ Question#risk-management
W
Wolf Alpha
Trader · · 785 views
What is Risk to Reward ratio and what is a good minimum?
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What is a good minimum R:R for a trade and how does it interact with win rate?
👍🔥📈15 reactions2 answers
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💡 2 Answers
✅Best Answer
MH
Market Hawk
Trader · 15 days ago
R:R of 1:2 means you risk ₹1 to make ₹2. With 40% win rate and 1:2 R:R: (0.4 × 2) - (0.6 × 1) = 0.8 - 0.6 = +0.2 expectancy. Profitable even below 50% win rate.
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PA
Price Action Pro
Trader · 15 days ago
Minimum R:R depends on your win rate. Below 50% win rate → need at least 1:2. Below 40% → need 1:3. Higher R:R requirements allow you to be wrong more often and still be profitable.
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