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What is Reward-to-Risk Ratio?

Statistics

손익비

The average profit divided by the average loss. A value of 2 means a winning trade earns twice what a losing trade loses. With a high ratio the total can be positive even when the win rate is below half, and with a ratio below 1 the total can be negative even when the win rate is high. It is checked by averaging winning and losing trades separately.

Reward-to-Risk Ra…average gain on winsaverage loss2.5 : 1

Lessons using this term (with diagrams)

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Reward-to-Risk Ratio meaning — Trading glossary | MarketSurfer