Risk Reward ratio is basically a formula which is used to measure the expected gains of a given investment against the risk of loss. Investors use this ratio to determine the viability or worthiness of any given investment.
Risk Reward Ratio
- Thread starter twox
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Nice work on the tool, but as others have said, it is only part of the issue at hand. As one says, necessary but not sufficient for risk management.
Expected outcome probability is the another part. You can add that into your tool and it would be very cool. Maybe even get a real time outcomes cumulation for a session.
Everyone is chasing huge reward to risk. One could probably say the higher the reward risk ratio, the lower the probability of a positive outcome, at least at the extremes.
Hope this helps with a V2 of the tool.
Expected outcome probability is the another part. You can add that into your tool and it would be very cool. Maybe even get a real time outcomes cumulation for a session.
Everyone is chasing huge reward to risk. One could probably say the higher the reward risk ratio, the lower the probability of a positive outcome, at least at the extremes.
Hope this helps with a V2 of the tool.