Two R bandit strategy explained: 50% win rate with 2:1 reward creates money printer.

So your edge is not two to one, but you have a defined edge of 50%. Think of this 50% as your win, or reward to risk, is two to one. I've shown you guys this math before. This is a profitable strategy. If you know that you can win 50% of the time, and every time you win, you win twice of what you're going to lose, you have an infinite money printer. And this is my entire trading strategy. I am the two R bandit. Now, there's periods of time where my win rate is less than 50%.