# RR and Win Rate (FAO RaptorUK)

2385

Hi Raptor !

Here are my calculations, which show the "MUST" Win Rate for the following RR (I have disregarded the spreads for the sake of simplicity):

Reward54321
Risk 11111
BE Winning %1720253350

How  I obtained the winning % is like this:

100% - (5/5+1)  = 17%

100%- (4/(4+1) = 20% etc.

Is this correct ?

Thanks :)

Moderator
18003

Shunmas:

Hi Raptor !

How  I obtained the winning % is like this:

100% - (5/5+1)  = 17%

100%- (4/(4+1) = 20% etc.

Is this correct ?

Thanks :)

if you mean the BE WR,  you use this    Risk / (Risk + Reward)

So Risk = 1 Reward = 5  BE WR =  1 / ( 1 + 5 )  =  1 / 6 = 16.6%

Your calculations are correct but coming from the opposite direction to mine . . .

2385

RaptorUK:

if you mean the BE WR,  you use this    Risk / (Risk + Reward)

So Risk = 1 Reward = 5  BE WR =  1 / ( 1 + 5 )  =  1 / 6 = 16.6%

Your calculations are correct but coming from the opposite direction to mine . . .

Yes, 100%...I just used the other way around. You using Risk first and then dividing it where as I used Reward.

Reward = \$50

Risk = \$10

So the BE Win Rate would be:

Risk / (Risk + Reward) = \$10 / \$60 = 16.67% (or 17% when rounded off)

or Reward / (Risk + Reward) = \$50 / \$60 = 83.33%, then subtract this from 100%, when get 16.67%

2385

This also means, from 25 trades, only 4 trades (round off to 5) needs to be profitable to breakeven.

17% of 25 = 4.25

Moderator
18003

Shunmas:

Yes, 100%...I just used the other way around. You using Risk first and then dividing it where as I used Reward.

2385

Yes, mathematics really help in this case, if we have a streak of losses. But practically, while trading, I cannot imagine how it will work.
Moderator
18003

Shunmas:
Yes, mathematics really help in this case, if we have a streak of losses. But practically, while trading, I cannot imagine how it will work.
It's not for trading . . .  it's for strategy analysis,  in the same way that the Strategy Tester is also for strategy analysis.  Why would you go live with a strategy that is hardly any better than a "coin toss" ?
2385

yea, strategy analysis or in the similar vein, trading system analysis.
Moderator
31184

Shunmas:

This also means, from 25 trades, only 4 trades (round off to 5) needs to be profitable to breakeven.

17% of 25 = 4.25