Risk-Reward Ratio – The Key to Long-Term Profitability
📈 A strategy with 40% win rate can still be profitable if risk-reward is favorable.
✅ Example:
If Risk : Reward = 1 : 2
10 trades → 4 wins (₹20,000 profit) + 6 losses (₹12,000 loss) → net +₹8,000
📌 Even with more losing trades, positive R:R ensures overall profit.
🧠 Don’t aim for 100% accuracy. Aim for consistency with favorable R:R setups.
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