Risk-reward ratio(Risk-reward ratio (R:R))
The ratio of the potential profit at target to the potential loss at stop. A 1:2 ratio means 2 units of profit per 1 unit of risk; together with the win rate it determines expectancy.
Also written as: risk/ödül oranı · risk/ödül · risk-ödül · R:R · RR oranı
A high R:R is not good on its own: a strategy with a 1:5 ratio and a 15% win rate produces a similar expectancy to one with a 1:1 ratio and a 60% win rate. What matters is the product of the two.
Thinking in "R" units (a trade is +2R or -1R) gives you a journal that is comparable and independent of the money amount.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.
- Risk/ödül oranı ve beklenen değerRisk & Money Management3×
- İşlem günlüğü tutma ve performans metrikleriRisk & Money Management2×
- Çoklu zaman dilimi analiziTechnical Analysis1×
- Fibonacci: geri çekilme ve uzatmaTechnical Analysis1×
- İlk 90 gün için çalışma planıGetting Started1×
- Kural tabanlı strateji nasıl yazılırStrategy & Backtesting1×