Decoded Intelligence Signal
Risk/Reward Ratio (R:R)
intermediate
strategy
Verified: May 26, 2026Lexicon Core Definition
The ratio of potential loss to potential gain on a trade, calculated as reward ÷ risk. A 2:1 R:R means risking $100 to potentially gain $200 — at this ratio you only need a 34% win rate to break even before fees.
Analysis Breakdown
The ratio of potential loss to potential gain on a trade, calculated as reward ÷ risk. A 2:1 R:R means risking $100 to potentially gain $200 — at this ratio you only need a 34% win rate to break even before fees. Full explanation coming soon when Journey 7 content is ingested.