What is the typical risk to reward ratio? - PCS

The risk reward typically varies from 1:1 to 1:4 depending on the price movement. It is important to note that risk:reward is generally misunderstood. Risk - reward cannot be looked at in isolation, it must be considered along with win rate. The combination of these two (along with Lot size) is proportional to actual profit. For example, we could use a RR of 1:2 but if the win rate was 30% we would overall make  a net loss. Whereas, if the RR was 1:0.5, but the win rate was over 67% then we would make a net profit. The key to maximizing profit is to get the best balance of win rate and RR. The system provides alternative take profit values so if you prefer to use a larger risk to reward ratio you can use one of the larger take profit targets.