The risk-reward ratio of #风险回报比 is an indicator that measures the relationship between the risk of an investment or trade and the expected return, typically used to evaluate whether the risk of a strategy is worth taking. It is calculated as follows: Risk-Reward Ratio = Expected Return / Risk Amount. An ideal risk-reward ratio is usually 2:1, meaning that for every unit of risk taken, an expected return of 2 units is anticipated. This helps investors determine whether an investment is worthwhile, ensuring profitability over the long term while controlling potential losses. A good risk-reward ratio is one of the keys to successful investing, effectively improving capital efficiency and risk management.