What is Risk to Reward ratio and what is a good minimum?

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.

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.