#RiskRewardRatio The Risk-Reward Ratio (RRR) is the relationship between risk and reward in a trade. It is calculated by dividing the potential reward by the assumed risk. For example, if you risk $100 and your profit target is $200, the RRR would be 2:1. A high RRR (like 3:1) is ideal, as it means that for every dollar of risk, you can earn three. This ratio helps make more informed decisions and manage risks. A good RRR allows you to be profitable even if you lose more times than you win. It is key to discipline in trading.

P.S.: web data meaning of the topic, so to speak.