The Importance of the Risk:Reward Ratio

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02-28-2010, 11:59 PM

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The Importance of the Risk:Reward Ratio

Trader A has a win percentage of 75% on all trades while trader B has a win percentage of closer to 40% on all trades. Which trader is more profitable? Of course we can't answer that as we don't know how much each trader makes when they are right compared...

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