Ratio risque-rendement: definition

What you aim for relative to what you risk

The risk-reward ratio compares the distance to the profit target with the distance to the stop. A trade risking 20 pips to target 40 has a ratio of 1 to 2, often written 2R: the target gain is twice the risk.

Expressing results in R rather than in euros lets you compare trades of different sizes and judge a strategy independently of capital.

The win rate required

The ratio sets the minimum win rate needed to avoid losing money, before fees: 1 ÷ (1 + R). With a ratio of 1, you need to win more than one trade in two. With 2, one in three (33.3%). With 3, one in four (25%).

The high-ratio trap

Aiming further lowers the probability of reaching the target. A ratio of 5 is only useful if price reaches it often enough. What counts is expectancy: win rate × average gain − loss rate × average loss. A 1R strategy that wins 60% of the time is better than a 4R strategy that wins only 15%.

A trading journal that records each position's R is the only way to know these real figures rather than assumed ones.

Frequently asked questions

Which risk-reward ratio should you choose?

The one that, with your method's real win rate, gives positive expectancy after fees. Many methods target between 1.5 and 3.

How do you calculate a closed trade's R?

The trade's result divided by the initial risk. A 150 euro gain on a 50 euro risk is +3R; a loss at the stop is −1R.