The risk:reward (R:R) ratio looks at the ratio of your average winners to your average losers. Convention calls this metric risk:reward although it is always written as reward:risk. It is calculated as:
Avg Winning P&L / Avg Losing P&L
For example, if your winning trades average $150 and your losing trades average $50, then your R:R ratio will be 3:1.
A trading strategy will break even, if the win rate is 50% and the R:R ratio is 1:1. If the win rate is higher, then the R:R can be lower and vice versa.
The GamePlan shows how your R:R ratio depends on your strategies, timing and psychological habits. Here you can identify situations in which your R:R ratio is below or above your personal average (average is indicated by a dotted black line).
You can use the chart colours to identify the areas of highest impact on the P&L. The purple bars indicate settings in which your average P&L is above your personal average and the orange bars indicate situations in which your average P&L is below your personal average.
If you want to analyse your Risk Reward during a specific period, simply set the date range of your choice.
