A trader explains why every trade needs at least a 2:1 risk-to-reward ratio. With that ratio, you break even at a 33% win rate: one winning trade covers two losses. Anything less gets rejected, no exceptions.
The beauty of trading, right, is asymmetric risk-reward. All of my entries is part of my checklist. The risk-reward has to be a minimum of 2 to 1. So if I see this form, but like the stop is really wide and I'm saying, okay, well, the target, it's only going to be a 1 to 1, that's no longer a trade. Even though it ticks all the other boxes, I need a minimum of 2 to 1 R to R. This is because you only need to then win 33% of the time, right? So if you can win 1 out of 3 trades, you're breaking even if each trade is 2 to 1.
