#Gate广场创作者新春激励

Today marks the 573rd day I’ve been posting updates without a break. Each post is not just a casual effort but carefully prepared. [微笑] If you think I am a serious person, you can walk with me, and I hope the daily content can help you. The world is vast, and I am small. Follow me so you don’t have a hard time finding me. [微笑][微笑]

Let’s talk about how to match the risk-reward ratio and win rate?
Some people think their win rate isn’t good enough and obsess over the risk-reward ratio, aiming for a single trade to earn three, five, or even ten times the risk, even if they only hit two or three times out of ten. Others prefer a high win rate, taking profits quickly and just wanting that “frequent winning” feeling. No matter which path you choose, you must stick to a bottom line: risk-reward ratio × win rate > 1. In the long run, this is the starting point for profitability.

For example, if you earn on average twice what you risk (risk-reward ratio 2:1), then a win rate over 33% is enough to survive; reaching 40% makes your strategy steadily profitable. So, neither is absolutely good or bad; it depends on whether the combination is suitable. We are not gods, and it’s hard to have both a high win rate and large odds at the same time, but it’s entirely possible to combine them reasonably and cross the “break-even point.” This is also why many people see the right direction but still lose money; or win several times in a row but get wiped out with one big reversal.

Next time before making a trade, ask yourself: am I relying on a high win rate or high odds?

Guys, don’t just look at my daily updates. Go to my pinned posts and give me some support. Move your little hands and help me out#