Risk-reward ratio and win-rate: how to use these indicators
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Descrição
Derive benefits from every executed trade. Find a balance between the indicator of profitable trades and relation between the risk and yield.If you are an intraday trader, do not aim only at a big number of profitable trades but also at their quality.It might seem that if you execute 70% of profitable trades, it will make you a profitable trader but it is not quite so. It is also necessary for traders to assess the quality of their profits and losses. It is extremely important to find a balance between the indicator of profitable trades (win-rate) and correlation between risk and profitability (risk-reward ratio).
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