$BTC
In theory, the "ideal" Risk Reward Ratio (RRR) for consistent profit depends on your strategy and win rate. Unfortunately, there is no single RRR that always results in consistent profit under real conditions, as the market is dynamic. What exists is a combination of RRR, win rate, and balanced and realistic risk management.
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Overview of RRR & Winrate Combination
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For Consistent Profit, you need:
1. RRR that suits your trading style (scalping, swing, trend following).
2. Win rate and consistency (average results, not results from one day).
3. Stable capital management and psychology.
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Recommended Ideal RRR based on Trading Style:
1. Scalping / Day Trade
RRR: 1:1 – 1:1.5
Ideal win rate: > 60%
Why? Frequent entries, small TP, SL must be tight.
2. Swing Trading
RRR: 1:2 – 1:3
Ideal win rate: 40–50%
Why? Focus on large movements, can withstand small losses several times.
3. Trend Following / Positioning
RRR: 1:3 – 1:5
Ideal win rate: 20–40%
Why? Many small SLs, but 1 large TP can cover many losses.
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TIPS for RRR to help with Consistent Profit:
Don’t just look for a large RRR, but match it with entry probability.
SL & TP must be logical (not determined based on hope, but based on support/resistance, volatility, ATR, etc.).
Don’t change positions while floating, especially without technical reasons.
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Example of a Consistent Strategy (Simple RRR 1:2)
For instance:
Entry capital: $100
SL: $10
TP: $20
Win rate: 50%
> In 10 trades: 5 losses x $10 = -$50, 5 wins x $20 = $100
Total profit = +$50 = consistent as long as you remain disciplined.
