#RiskRewardRatio The risk/reward ratio is a fundamental pillar of any profitable trading strategy. It allows for the comparison of potential loss to the expected reward on a position. A good trader does not simply seek to be right often, but to earn more when they are right than they lose when they are wrong. For example, with a ratio of 1:3, even if one only wins 40% of the time, the portfolio can remain profitable. Mastering the #RiskRewardRatio is about learning to better filter trades and manage capital logically rather than emotionally.