R:R Ratio – The Unintended Red Herring

The Reward Risk (R:R) ratio helps a trader manage his trade –  not provide a valuation of risk.  R:R does not measure risk.  Some strategies with “inferior” R:Rs are in fact safer (less risky) than some with  higher R:Rs. A highly positive R:R ratio falsely assures many traders a risk is worth taking.  If someone passing by my house tells me there is a large, hopeful gold vein in […]