Is 1:3 R:R actually better, or are we just optimizing the wrong variable?
I’ve been testing different R:R structures and I’m starting to question the obsession with fixed 1:2 / 1:3 targets.
A 1:3 setup only needs a 25% win rate to break even mathematically before costs.
But pushing the target further can also create longer losing streaks and lower hit rates.
So I’m wondering:
Would you rather have:
A) 40% WR with 1:3 R:R
B) 55% WR with 1:1.8 R:R
C) 65% WR with 1:1.2 R:R
Assuming similar execution costs and drawdown.
I’m less interested in what sounds best and more interested in what people have actually observed live.