#RiskRewardRatio

1:2 or better is often considered a good trade.

High win-rate strategies might tolerate 1:1 or even worse, while low win-rate strategies need higher RRR (e.g., 1:3, 1:5) to be profitable.

Why It Matters:

Helps you filter trades—only take ones where the reward justifies the risk.

Promotes discipline—prevents chasing bad setups.

Helps maintain a positive expectancy over many trades.

Want a quick calculator for risk-reward or examples for a specific trading style (like swing trading, day trading, crypto, etc.)?