Which is of greater significance and simplicity for you: a High Risk-Reward Ratio (RR) or a High Win Rate?

For me, achieving a high Risk-Reward Ratio takes a considerable amount of time and necessitates a lot of patience. It's led to instances where I've experienced substantial losses. This has led me to contemplate whether lowering my RR might result in a significantly improved win rate. What's your experience with this? I'm curious to hear your thoughts.Looking forward to your responses! 🙏🏼
35 Answers
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saifalhilali

I think it's a mix of both

For example 55% win rate with risk to reward 1-1.5 still profitable

And 45% win rate  with risk to reward 1-2 also profitable

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fong zi cheng

I would prefer a high risk-reward ratio over a high win rate.

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BuntitaThailand

Both a high risk-reward ratio (RR) and a high win rate are important aspects of successful trading, but they have different implications for your overall profitability.

**High Risk-Reward Ratio (RR)**

A high RR means that you are risking more money than you expect to win on each trade. This can be a profitable strategy if you can consistently pick winners, but it also means that you will lose more money on your losing trades.

**High Win Rate**

A high win rate means that you are winning more trades than you are losing. This is a less risky strategy than aiming for a high RR, but it also means that you will make smaller profits on your winning trades.

**Which is more important?**

The relative importance of RR and win rate depends on your individual trading style and risk tolerance. If you are a risk-averse trader, then you will likely prioritize a high win rate. If you are willing to take on more risk, then you may be able to achieve higher returns by aiming for a higher RR.

**Simplicity**

In terms of simplicity, win rate is a more straightforward concept than RR. RR is a ratio of two numbers, which can be difficult to calculate and interpret. Win rate, on the other hand, is simply a percentage of winning trades.

**Overall**

Both RR and win rate are important factors in successful trading. However, the relative importance of each factor will depend on your individual trading style and risk tolerance. Win rate is a simpler concept to understand, but RR can be a more powerful tool for achieving higher returns.

Ultimately, the best way to determine the optimal balance of RR and win rate for your trading style is to backtest your strategies and experiment with different ratios.

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Moira Mike

 low win rate, 50% or below, requires winners to be larger than losers in order for you to be profitable.

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Jim Harriman

You'll be more profitable with a 60% win rate and a risk/reward below 1.0.

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Hugo Smith

You can still be profitable with a 60% win rate and a risk/reward of 1.0. 

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Harley Bennett

of course RR

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Chester Oliver

Win rate without propert RR the reslut is bad

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Murphy Edith

RR is the best

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Yehudi Moll

I've learned that maintaining discipline and sticking to my trading plan is crucial, regardless of whether I prioritize a high Risk-Reward Ratio or a high Win Rate

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Edmund Broad

I prefer a high Win Rate over a high Risk-Reward Ratio. Consistent small wins give me more confidence and stability in my trading.

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Louis Steinbeck

Personally, I find a high Risk-Reward Ratio more significant. The potential for larger profits outweighs the lower win rate for me.

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Cedric Judson

In my opinion, risk management is more important. Focus on capital security first and foremost. Profit will follow even though the win rate is not too high.

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Xenia Hobson

just because you have a high win rate doesn't mean the final trading result will be profitable. because if risk management is bad. then it's useless.

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Bishop Noel

high win rate to ensure that the trading strategy we have is profitable to use. Risk Reward Ratio, apart from having a profitable strategy, we also need to ensure that the strategy does not leak. because it's useless, the profits are big, the losses are just as big. This second variable is very related

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Lionel Scripps

High win rate is like gambling. it is depends to the market if the price looking forward to yor target, you will get the profit and vice versa.

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Wright Baker

A higher risk-reward ratio is generally preferable because it offers the potential for a greater return on investment without undue risk-taking.

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Elizabeth Effie

i will go for High Risk Reward Ratio (RR) as i could plan my account for long term investment. when you fail one setup, atleast you have another chance to recover.

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Winni Fast

In trading its not about how much you make but rather how much you don't lose"(Bernard Baruch)

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Nicola Jacob

It is possible to make more profit by winning 50% of your trades than if you would win 70% of your trades if you maintain good risk reward ratio

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