Win scenario:
50% chance to win $2.00 per $1.00 risked
Loss scenario:
50% chance to lose $1.00 per $1.00 risked
Expected value formula:
(Win rate × Reward) - (Loss rate × Risk)
Break even formula:
Risk ÷ (Risk + Reward) = 33.3%
| Risk/Reward | 20% | 30% | 40% | 50% | 60% | 70% |
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