#RiskRewardRatio One of the most important habits in successful crypto trading is calculating your risk-reward ratio before entering any position. This simple metric helps you determine whether a trade is worth taking based on potential profit versus potential loss.

To calculate it, divide the amount you expect to gain by the amount you're willing to risk. For example, if you're targeting a $300 gain with a $100 stop-loss, your risk-reward ratio is 3:1 — meaning the potential reward is three times the risk.

Here are three useful tools and indicators to guide your calculation:

1. Fibonacci Retracement – Helps you spot key support and resistance levels to set more accurate targets and stop-losses.

2. ATR (Average True Range) – Measures market volatility and helps you size your stop-loss wisely.

3. TradingView Risk-Reward Tool – A built-in feature that visually maps out your target, stop-loss, and ratio on the chart.

A solid risk-reward ratio — typically at least 2:1 or better — keeps your trades strategic and your emotions in check. #RiskRewardRatio