When looking at the ETH/USDT pair, we find that analyzing the Risk Reward Ratio is extremely important for any trader. Let's assume you decided to enter a trade when the price of Ethereum was $3300, and you set your stop loss at $3200, with a target at $3600. Here, the risk is $100 and the potential reward is $300, meaning the risk to reward ratio is 1:3, which is considered ideal in the trading world.

The higher the reward ratio compared to the risk, the greater the chances of achieving good profits in the long term, even if the success rate of trades is low. Therefore, it is important not to rely solely on technical analysis or news, but to have a clear trading plan based on the risk to reward ratio.