#Training
Risk to return (RR) ratio in trading
๐ In trading, an important tool is the ratio of risk to potential profit, abbreviated as RR. This ratio helps in assessing how profitable a trade is. Risk is managed by setting a stop loss.
Winrate is a measure of the success of a trader's trades.
๐ซ To achieve a high winrate, it is recommended to keep the RR at least 1 in 3. This means that the potential loss should be at least 3 times less than the potential profit. However, it is important to remember that the RR should be adapted to your individual trading strategy.
RR should be calculated immediately before entering a trade, after determining the level of stop loss and take profit.
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