Ran through these Risk-Reward scenarios to show their win %. These numbers are self-evident; the building blocks to a quantitative strategy. Use as a reference.
R Value(Reward/Risk) - Expected win %
0.02 - 97.7%
0.05 - 95.0%
0.1 - 90.0% (10:1)
0.15 - 86.4%
0.2 - 83.3% (5:1)
0.25 - 80.0%
0.3 - 76.0%
0.35 - 73.3%
0.4 - 71.2%
0.5 - 66.6% (2:1)
0.6 - 61.5%
0.7 - 57.7%
0.8 - 54.0%
0.9 - 52.0%
1.0 - 50.0% (1:1 Risk:Reward)
1.1 - 47.0%
1.2 - 45.0%
1.3 - 43.0%
1.4 - 41.3%
1.5 - 40.0%
1.7 - 36.0%
2.0 - 33.3% (1:2)
2.5 - 28.3%
3.0 - 25.0% (1:3)
3.5 - 22.7%
4.0 - 20.0%
5.0 - 16.6%
6.0 - 14.3%
7.0 - 12.5%
8.0 - 11.4%
9.0 - 10.4%
10. - 9.5% (1:10)
12. - 7.9%
15. - 6.5%
30. - 4.1%
37. - 3.8%
40. - 3.5%
50. - 2.9%
