For my own trading, I look for statistically unlikely events with both pricing (fundamental & technical) disparities and look for a strategy to profit from this.
An example of this would be the night of the Brexit vote. I observed that the pound was overpriced (above it's fundamental and technical valuations). I reasoned that if the UK stayed in the EU (which was at that point the most likely outcome), the pound would return to it's pre vote state. In this instance, by shorting the pound, I would have profited on either outcome of the events.
A recent example would be a break out of a corona virus in the far east. I observed from previous breakouts (there have been 5 now in 20 years in China), that this is shortly followed by poor fundamental results in the West due to supply/demand issues of raw materials. Once again, the downside risk of taking a short position using this strategy was low, yet, if the proverbial did hit the fan, then the upside would be immense.
The biggest risk to reward in my opinion is seeded in these events and realised in the volatility that follows. As volatility is price movement and price movement is profit/loss.
Hope this helps.
Once again, I'm not a pro, none of this is advice, what you do is up to you, not my responsibility and all that jazz.