The risk reward ratio compares a trade's profit potential (reward) to its potential loss (risk). The trader's lines determine both the risk and profit associated with a transaction. Stop-loss orders are used to quantify risk. This is the price difference between the entry point and the stop-loss order.

In the case of a successful transaction, profit targets are used to determine an exit point. Profitability is defined as the difference between the profit objective and the entry price. Stop-loss orders instruct a security to be sold automatically if the price falls below a certain level. By exiting the deal before its value plummets further, the risk of loss is reduced.

These two figures indicate whether the potential benefit is greater than the potential danger, or vice versa. If you do this, you can determine whether or not a deal is a good choice.

The risk reward ratio is calculated by checking the price difference between the entry point and the stop loss placed so as to be able to compare the potential profit with the risk involved, with the latter being quantified by means of the stop loss order that is set.

There seems to be a common understanding that to be a successful trader, the risk to reward ratio needs to be a higher than 1, is that really the case? Could a trader not be successful even with an RRR less than 1?

The risk reward ratio is the relationship between the potential gains and losses in a given investment. This ratio measures an investor's willingness to take on risks in order to obtain potential rewards. Investors should know the risk reward ratio before they invest any money because it can help them determine if an investment will pay off or not.

The risk-reward ratio is a measure of the amount of risk undertaken in an investment opportunity in comparison with the potential appreciation.

FX Merge Risk Reward Tool is script for trade and risk management by the panel and lines visible on the chart. The panel allows to draw and move trade lines on the chart: open price, stop loss and take profit line (with chosen color and style). Tool calculates for them Risk Reward Ratio and possible profit/loss in account currency...

https://www.fxmerge.com/free-risk-reward-tool