#Training

Risk to return (RR) ratio in trading

๐Ÿ‘ 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.

๐Ÿ”ซ 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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