#RiskRewardRatio Ah — the classic Risk-Reward Ratio (RRR) — super important for any smart investing or trading strategy!

Here’s the quick breakdown:

Risk-Reward Ratio = Potential Loss : Potential Gain

Example:

If you enter a Bitcoin trade at $60,000, set your stop-loss at $58,000 (risk $2,000) and your target at $64,000 (reward $4,000):

RRR = 2,000 : 4,000 = 1:2

Meaning for every $1 you risk, you're aiming to make $2.

Golden rule for many traders:

Minimum acceptable ratio: 1:2 or 1:3

The higher the ratio, the fewer "wins" you need to be profitable over time.

Want me to help you calculate one for a specific trade or investment scenario? Just give me your entry, stop-loss, and target!