#RiskRewardRatio

One of the most important tools in my trading toolkit is the risk-reward ratio. I calculate it by determining my potential loss (the risk) versus my potential gain (the reward) on a trade. For example, if I risk $100 to potentially make $300, my risk-reward ratio is 1:3. I typically use TradingView with Fibonacci levels, support/resistance zones, and ATR (Average True Range) indicators to set realistic targets and stop-loss levels. This method helps filter out low-quality setups. Using the risk-reward ratio has helped me avoid emotional trades and stick to a strategy with a clear edge, ultimately leading to more consistent, informed decisions.

#StopLossStrategies