Directional Min Reward:Risk
Setting key
directional_min_reward_risk
Default
1.0
What it does
Minimum reward-to-risk ratio required for the proposed directional structure. Calculated as max_profit divided by max_loss. A ratio of 1.0 means the potential gain must at least equal the potential loss. This replaces the POP floor used by premium engines: directional bets are lower-POP but require better payoff.
When to change it
Raise to 1.5 or 2.0 for better-structured directional trades. The 1.0 floor is a baseline; most practitioners want at least 2:1 on directional bets.
Safe range
0.75 (slightly asymmetric against you) to 3.0 (only high-reward setups).
Example
Bull call spread: max profit $3.50, max loss $1.50. Reward:risk = 2.33, above the 1.0 floor. A structure with max profit $1.00 and max loss $2.00 (0.5:1) would be rejected.