#RiskRewardRatio Talking about the risk-reward ratio is very important, especially for those of you who want to trade more strategically and not just rely on feelings. Personally, I started to take this ratio seriously when I realized that the 'just profit' strategy doesn't last long if not calculated properly.

The risk-reward ratio (RRR) is essentially the comparison between potential loss and potential profit in one position. For example, if I enter a position with a potential loss of $50 and a potential profit of $150, then my ratio is 1:3. This means that one loss can be covered by one successful profit.

Calculating it is quite simple. First, I determine the entry point, for example, buying $BTC at $60,000. Then I look for a stop-loss, say at $58,000 (so my risk = $2,000). Next, I set a take profit target, for example at $66,000 (potential profit = $6,000). From there, I can calculate the RRR to be 1:3.$BTC