Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Re: A question about risk:reward ratio

Got it! That's why the higher RRR makes sense! Although, there are ways around the issues you mentioned.
Not using signals prone to historical distortion, or using replay functions on charting software instead of a static historical chart. And so on.
Then of course forward testing (live)could be thrown into the mix. I guess you are saying that at the end of the day a lower RRR may be the result, so a higher ratio is used for precaution. Thanks for your thoughts !!