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Successful traders base ratios on statistical edges and volatility rather than arbitrary targets. A higher risk-reward ratio allows for sustained growth even during losing streaks by protecting capital long-term.
How do successful prop traders determine optimal risk-reward ratios, and how does this influence long-term account growth?
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Successful traders base ratios on statistical edges and volatility rather than arbitrary targets. A higher risk-reward ratio allows for sustained growth even during losing streaks by protecting capital long-term.