rvitale01
rvitale01
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November 19th, 2016 at 4:24:50 PM permalink
Suppose this:

Reward/ risk: 1:1
Break even win rate: 50%

Reward/ risk: 2:1
Break even win rate: 34%

Reward/ risk: 3:1
Break even win rate: 25%

Which reward/ risk is better: 2:1? 1;1?
RS
RS
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Joined: Feb 11, 2014
November 19th, 2016 at 7:01:42 PM permalink
Quote: rvitale01

Suppose this:

Reward/ risk: 1:1
Break even win rate: 50%

Reward/ risk: 2:1
Break even win rate: 34%

Reward/ risk: 3:1
Break even win rate: 25%

Which reward/ risk is better: 2:1? 1;1?



Do you mean 34% or 33.3333333333333% (ie: 1/3)? If you mean 34%, then 2:1 is the best (since you have a 2% advantage).

If you meant 1/3 (or 33.333%) at 2:1, then all the reward/risks are essentially the same thing, as there is no purpose in engaging in any of them, other than entertainment. If it's entertainment, then whichever one you prefer.
rvitale01
rvitale01
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Joined: Nov 19, 2016
November 20th, 2016 at 4:01:40 AM permalink
Meant 1/3.
Thank you
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