Win/Loss Ratio and R/R Ratio Link?

**rabbi504564** · 01-04-2012, 10:59 AM

I'm interested in what people think about the relationship between the Win/Loss Ratio and the R/R Ratio.

1.If we want a good R/R ratio, does that mean we should be ready to accept a bad win %? In other words, does having a good R/R Ratio mean that your win percentage will suffer? Example of this would be a typical trend following system, where the win % is usually below 50% but cause the winners are let to run, the R/R Ratio is good. Example of this type of trading, Soultrader.

2.If we want a good win percentage, does that mean we should be ready to accept a bad R/R Ratio? In other words, does having a bad R/R Ratio mean that your win % will be good? Extreme example of this type of trading would be some scalping strategies like Stiviet (the way he trades lately) with 1000 pips SL and 10 pips TP. Stiviet has menaged to get over 300 wins in a row, but the drawdown of his losing trades can be big, hence a bad R/R Ratio.

What's your opinion of the link between the Win/Loss Ratio and R/R Ratio? Is there one? If so, how significant is it? Your experiences and/or research are welcome. Any links to articles,research etc... on this subject are welcome. Let the discussion begin.

**tellingtales109** · 03-18-2012, 07:05 AM

A R:R atio stands for risk :reward ratio and it is important that a trader decides which type of R-R ratio will be suitable for his trading needs. If the trader gets a signal, the first thing is to assess the R-R ratio and then he decides if the trade is worth taking based on the R-R ratio.

**moneytank88** · 04-07-2012, 08:07 PM

That\'s correct and a trader should always take trades that have a risk:reward ratio greater than 2. Meaning that for each and every trade, a trader should expect to win twice the amount that is risked.

**petrelsea70** · 08-12-2012, 02:11 PM

reward ratio and it is important that a trader decides which type of R-R ratio will be suitable for his trading needs. If the trader gets a signal, the first thing is to assess the R-R ratio and then he decides if the trade is worth taking based on the R-R ratio.

**luke1** · 08-13-2012, 09:15 PM

To thin about win or loss ratio here on Forex Trading, I can see on Forex, this is totally different with gambling here. Because Forex is forex and the winning position can be turned as loss position here. This is the true thing because the market price is keep moving

**casual** · 08-14-2012, 02:49 PM

to set a risk reward ratio, a trader should know the winning and loosing ratio of their trading system first. risk reward ratio is like money management or risk management plan. if our trading system have high winning probability than loosing, then we can set high risk reward ratio, with note that 2 of 3 losses in a row will never lead us get margin call.

**petrelsea70** · 09-13-2012, 04:45 PM

it is important that a trader decides which type of R-R ratio will be suitable for his trading needs. If the trader gets a signal, the first thing is to assess the R-R ratio and then he decides if the trade is worth taking based on the R-R ratio.reward ratio greater than 2. Meaning that for each and every trade, a trader should expect to win twice the amount that is risked.I can see on Forex, this is totally different with gambling here. Because Forex is forex and the winning position can be turned as loss position here. This is the true thing because the market price is keep moving

**shanta93** · 03-07-2013, 01:39 PM

Win an loss ratio in forex business is depends on the traders trading experience. If the traders have enough trading experience the they can make money from this business and can win but if they have not any experience then they get loss from this business.

**nahidtw** · 03-16-2013, 01:47 PM

Win and loss from forex market is depends on the traders trading experience. If the traders have enough trading experience then they can earn a lots of money from this market. But if they did not have any experience then they can not make money from this market.

**kashi9760** · 04-22-2013, 08:54 AM

Win/loss ratio means how many trades we win and how many trades we lose out of total doing trades.If we win more than loss ,it means we are doing good trading.R/R means we take how many risk for profit and get how many its reward.If we gets bigger reward than taking risk ,it mean we are doing good trading.These ratios shows our performance in trading.