The reward to risk ratio (RRR, or reward:risk ratio) is a very controversially discussed trading topic and while some traders claim that the reward:risk ratio is totally useless, others believe it is the Holy Grail in trading. In the following article we explain how to use the reward risk ratio correctly, share some lesser known facts about the concepts and demystify the ideas behind the reward:risk ratio. Myths around the reward:risk ratio Myth 1: The reward:risk ratio is useless You often read that traders say the reward-risk ratio is useless which... READ MORE
