Day: December 8, 2023

The Risk-reward ratio in backtesting a trading strategy quantifies the potential profit relative to the assumed risk on each trade, helping traders assess the strategy’s ability to generate returns that justify the level of risk undertaken

The win-loss ratio in backtesting a trading strategy is a metric indicating the proportion of winning trades to losing trades, offering insights into the strategy’s risk-reward profile and the balance between profitability and potential losses