Silly Question -- Pi Backtest : Risk- Reward Ratio concept. If we backtest our tradescript in Pi, we get Risk Reward ratio varying from (-) to (+). Higher + value is better right?

Algos, strategies, code
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For Example, some X strategy gives you Risk to Reward Ratio : + 0.695 and Y gives - 0.500 and Z gives +0.838. Which is best one ? usually we mention as Risk:Reward as 1:2,1:3 correct ? Please explain…

Ratio conversions also if possible.( More silly :P) Thanks…

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Generally both ways of notation is used.If you write risk to reward as 1:2 then it means for every 1 unit of risk you are taking you will be rewarded with 2 units.

The same can be written as .5 which should be understood as for every one unit of reward the risk is .5 units.

In positive risk to reward ratio the lesser the better and if risk to reward ratio is negative then you can strictly avoid those strategies.

Ideally one should go for strategies which offer risk to reward ratio of less than .5 So that, one winning trade can compensate for at least two losing trades.

In the above case you mentioned,strategies which has given risk to reward ratio of .695 should be given high priority comparatively with other two strategies and followed by strategy which has given a ratio of .838.

The strategy with negative risk to reward should be avoided as that particular set up will most likely end up in losing.

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