Definition
Compare the size of your average winner and loser.
Formula. Average net winning trade ÷ average absolute net losing trade. This is realized payoff, not the planned reward / risk at entry. Requires both winners and losers.
Where the planned ratio goes
| Behaviour | Effect on realized ratio |
|---|---|
| Taking profit before target | Average win falls; ratio drops |
| Moving a stop away from entry | Average loss rises; ratio drops |
| Scaling out early on winners only | Average win falls while losses stay full size |
| Cutting losers early and holding winners | Ratio rises — the intended direction |
How it goes wrong
- Confusing it with the planned ratio
- This figure is realized payoff, computed from outcomes. It is not the reward-to-risk you set at entry, and the difference between them is the point.
- Reading it without winners and losers
- The ratio requires at least one of each. Orderblock reports it as unavailable rather than producing a misleading value from an incomplete sample.
Questions
My planned ratio is 3:1 but realized is 1.1:1. What now?
Compare average loss against your recorded risk. If losses exceed 1R the problem is stop discipline; if they sit at 1R but winners fall short of target, the problem is exiting early. These need opposite fixes, which is why the two numbers have to be read together.