#RiskRewardRatio The risk-reward ratio (RRR) is a way to measure the potential profit of a trade relative to its potential loss. Here's how it's calculated:

Risk-Reward Ratio = Potential Loss / Potential Gain

Example:

If you're entering a BTC trade at $70,000, with:

A stop-loss at $65,000 (risk = $5,000)

A take-profit at $80,000 (reward = $10,000)

RRR = 5,000 / 10,000 = 0.5

This means you're risking $1 to make $2 — a solid 1:2 risk-reward setup.

Ideal Ratios:

Day traders often aim for 1:1.5 or higher

Swing traders/investors often want 1:2 or 1:3 setups

The higher the ratio, the fewer trades need to be winners for you to be profitable