#RiskRewardRatio Calculate the ratio by dividing expected gain by potential loss (e.g.: gain $300 vs. loss $100 → ratio 3:1). Example: if I buy ETH at $1,800 with a stop at $1,700 (risk: $100), the target should be $2,100 ($300 gain).
Use indicators like Fibonacci or support/resistance to define targets. Look for ratios ≥1:2 for profitable long-term trades.
Calculate risk as the distance between entry and stop-loss, and reward as entry to target. I use the ATR (Average True Range) to define technical stops and for profit-taking zones.
Tools like TradingView help visualize levels.