$TRUMP
Calculate the risk-reward ratio.
The stop-loss and take-profit levels are used to calculate the risk-reward ratio of a trade.
The risk-reward ratio is the measure of the risk taken in exchange for potential rewards.
You can calculate the risk-reward ratio using this formula:
Risk-reward ratio =
(Entry price - Stop-loss price) /
(Take-profit price - Entry price)
Generally, it is better to make trades that have a lower risk-reward ratio, as it means that your potential gains outweigh potential risks.