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I good clarifying post!
Yes, it is absolutely meaningless to quote Risk Reward in terms of expected Take Profit and Stop Loss values alone. A strike rate is paramount to complete the picture.
I find PIPs per Trade to be a the most useful number when evaluating performance.
Of course the formula :
PIPs per Trade = Total Number of PIPs Profit / Total Number of Trades
Strikes rates should then be used to determine the probabilities of a sequence of loses such that you can anticipate a worst case sequence. Your investment amount can be optimised to suit. I'll see if I can find the formula somewhere and post it.
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