Risk-Reward Ratios and Expectancy

This lesson is for enrolled learners

The concept Risk-reward ratio compares how much you stand to lose (distance to your stop) against how much you stand to gain (distance to your target) on a single trade — a 1:2 ratio means you're risking $1 to make $2. But risk-reward alone doesn't tell you whether a trading approach is profitable; you also need win rate, and the……

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