Entry, stop, and target prices — we compute R:R, risk in cash, reward in cash, and the breakeven win rate your strategy needs to profit at that ratio.
R:R is the ratio of potential reward to potential risk on a single trade. The critical insight: R:R and win rate trade off against each other. A 1:3 system can make money at 30% win. A 1:1 system needs 55%+ to overcome spread and commissions.
Don't force R:R by tightening the stop — that's how you get stopped out on normal noise. Place the stop where the trade idea is structurally wrong, then size the reward target based on what's realistically reachable. If the resulting R:R is under 1:1, the trade probably isn't worth taking.
No single answer. Trend-following EAs often run 1:2+ at 40-50% win. Scalpers run 1:1 at 60-70%. What matters is that expectancy per trade (win% × avgWin − loss% × avgLoss) is positive.
Conditionally yes — after price has moved 1R in your favor. This turns losers into scratches without capping winners. Done mechanically, it boosts psychological durability.