Win Rate
A 1:0.5 risk-to-reward ratio produces a 66% win rate when trading completely randomly. A 1:1 risk-to-reward ratio produces a 50% win rate when trading completely randomly. A 1:2 risk-to-reward ratio produces a 33% win rate when trading com…
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A 1:0.5 risk-to-reward ratio produces a 66% win rate when trading completely randomly. A 1:1 risk-to-reward ratio produces a 50% win rate when trading completely randomly. A 1:2 risk-to-reward ratio produces a 33% win rate when trading completely randomly. Profitability does not depend on having a high win rate by itself. Win rate has an inverse mathematical relationship with reward-to-risk ratio in random events and zero-sum games.