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Risk Reward Ratio

The document examines the relationship between risk-reward ratio and profitability, success rate, and other factors. It shows data on different risk-reward ratios ranging from 4:1 to 1:6, and how profit, success rate, and other metrics vary with different ratios. Higher risk-reward ratios are associated with greater potential profits but lower success rates, while lower ratios have lower profits but higher success.

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Solai
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938 views4 pages

Risk Reward Ratio

The document examines the relationship between risk-reward ratio and profitability, success rate, and other factors. It shows data on different risk-reward ratios ranging from 4:1 to 1:6, and how profit, success rate, and other metrics vary with different ratios. Higher risk-reward ratios are associated with greater potential profits but lower success rates, while lower ratios have lower profits but higher success.

Uploaded by

Solai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Risk (Stop Loss) Reward (Target) Risk Reward Ratio

1000 250 4:1


1000 500 2:1
1000 1000 1:1
1000 2000 1:2
1000 3000 1:3
1000 4000 1:4
1000 5000 1:5
1000 6000 1:6

Effect or RR Ratio on Profitability


200000

150000

100000

Profit 50000

0
4:1 2:1 1:1 1:2 1:3 1:4 1:5
-50000

-100000

Risk Reward Ratio


Success Ratio (No of Profitable Trades per 100 Trades) Profit
40 -50000.0
40 -40000.0
40 -20000.0
40 20000.0
40 60000.0
40 100000.0
40 140000.0
40 180000.0

on Profitability

1:3 1:4 1:5 1:6

eward Ratio
Risk Reward Risk Reward Ratio Success Rate
10 2.5 4:1 80%
10 5 2:1 67%
10 10 1:1 50%
10 20 1:2 33%
10 30 1:3 25%
10 40 1:4 20%
10 50 1:5 17%
10 60 1:6 14%
Relation betw een RR Ratio and Success Rate
90%
80%
70%
60%
50%
Success Rate 40%
30%
20%
10%
0%
4:1 2:1 1:1 1:2 1:3 1:4 1:5 1:6

Risk Reward Ratio

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