Why this ratio decides your account's fate
The reward-to-risk ratio sets the win-rate you need merely to survive:
| Ratio | Break-even win-rate | Reading |
|---|---|---|
| 1:0.5 | 67% | Nearly impossible to sustain |
| 1:1 | 50% | Zero margin for error |
| 1:1.5 | 40% | The practical minimum |
| 1:2 | 33% | Comfortable — lose twice as often as you win and still break even |
| 1:3 | 25% | Excellent if the target is realistic |
The mirror warning: inflating the ratio with a fantasy target improves nothing — the paper ratio rises while the odds of reaching it collapse. Targets must rest on real levels — see support and resistance.