Beginner 5 min read
Risk-to-reward — why 2:1 is the floor
If your average R:R is below 2:1, you have to win >50% of the time. Math says you won't.
At 1:1 R:R, you need to win more than 50% of your trades just to break even before fees. At 2:1, you only need to win 34% of the time to break even — and most disciplined traders can clear that bar even with a mediocre edge.
The practical implication: it's fine to lose more often than you win, as long as your winners are meaningfully bigger than your losers. Chasing a high win rate at the cost of R:R is usually a trap — it feels good and slowly bleeds the account.