What Is Risk:Reward Ratio?
The risk to reward ratio (R:R) compares the amount you are risking on a trade versus the amount you aim to make. A trade with a 1:2 risk to reward ratio means that for every £1 you risk, you are targeting £2 in profit.
| R:R Ratio | Breakeven Win Rate | Required Edge |
|---|---|---|
| 1:1 | 50% | Minimal edge required |
| 1:1.5 | 40% | Lose 6 in 10 and still profit |
| 1:2 | 33.3% | Lose 2 in 3 and still profit |
| 1:3 | 25% | Lose 3 in 4 and still profit |
Why Gold Trade Signals Targets 1:2+
Every trade idea sent through our VIP channel is evaluated for R:R. We target a minimum of 1:2 on every trade, meaning even if our members only win half their trades, they are consistently profitable.