Risk (Stop Loss) Reward (Target) Risk Reward Ratio

1000 250 4:1

1000 500 2:1
1000 1000 1:1
1000 2000 1:2
1000 3000 1:3
1000 4000 1:4
1000 5000 1:5
1000 6000 1:6

Effect or RR Ratio on Profitability

200000

150000

100000
Profit

50000

0
4:1 2:1 1:1 1:2 1:3 1:4 1:5 1:6
-50000

-100000
Risk Reward Ratio
 Success Ratio (No of Profitable Trades per 100 Trades) Profit
40 -50000.0
40 -40000.0
40 -20000.0
40 20000.0
40 60000.0
40 100000.0
40 140000.0
40 180000.0

Ratio on Profitability

1:2 1:3 1:4 1:5 1:6

Risk Reward Ratio

Risk Reward Risk Reward Ratio Success Rate
10 2.5 4:1 80% Relation between RR
10 5 2:1 67% 90%

10 10 1:1 50% 80%

10 20 1:2 33% 70%

1:3 60%
10 30 25%

Success Rate
50%
10 40 1:4 20%
40%
10 50 1:5 17%
30%
10 60 1:6 14%
20%
10%
0%
4:1 2:1 1:1
Risk
 Relation between RR Ratio and Success Rate
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
4:1 2:1 1:1 1:2 1:3 1:4 1:5 1:6
Risk Reward Ratio