#RiskRewardRatio
Risk-Reward Ratio in Crypto Trading
What is Risk-Reward Ratio (RRR)?
It’s a tool to measure how much you’re willing to risk to potentially earn a certain reward.
Formula:
Risk-Reward Ratio = Potential Loss / Potential Gain
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Example:
You enter a trade on BTC at $60,000
Stop-loss: $58,000 (risk = $2,000)
Take-profit: $64,000 (reward = $4,000)
RRR = 2000 / 4000 = 1:2
This means you're risking $1 to potentially gain $2.
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Why It Matters:
A 1:2 ratio or higher helps you stay profitable even if only 50% of your trades win.
It forces disciplined trading and emotional control.
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Quick Tips:
Avoid trades with low RRR (e.g., 1:0.5) — the odds aren’t in your favor.
Use proper **
