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RRR (win/loss)

RRR is your average win divided by your average loss, in absolute value. It is the figure FTMO and MetaStats call "Average RRR". It describes an observed outcome, not an intention: the ratio you aimed for when placing your stop and target is another thing, and the two rarely match.

The formula

Average win ÷ average loss (absolute value). This is FTMO / MetaStats' 'Average RRR'.

How to read it

How much your winners weigh against your losers. Ignores your stop.

Cross it with your win rate, they are never read alone. An RRR of 2 needs a win rate above 33% to be profitable, an RRR of 1 needs more than 50%. That pair, and only that pair, says whether a system wins. Everything else follows from it.

The classic mistake

Confusing it with average R. RRR ignores your stop entirely: it compares currency to currency. Average R ties each trade to the risk actually taken. A big gain made with a very wide stop gives an excellent RRR and a poor R, and R is the one telling the truth about your money management.

To go deeper on this : read the full guide. Every term is gathered in the glossary.