The Risk-Reward Ratio (RRR) is a key concept in trading that helps you manage risk and maximize profit. It compares how much you're willing to risk with how much you aim to gain on a trade.
☑️Formula:
RRR = Potential Loss / Potential Gain
For example, risking $10 to make $30 gives you a 1:3 RRR.
🤔Why It Matters on Binance
Protects Capital: A good RRR ensures long-term profitability—even with some losing trades.
Improves Discipline: Keeps your trading decisions logical and consistent.
Optimizes Strategy: Helps you set smarter entry, stop-loss, and take-profit levels.
💡How to Use It
Use Binance’s TradingView tools to mark entry, stop-loss, and target levels.
Aim for RRR of 1:2 or better (risk $1 to make $2)
Avoid low RRR trades, especially without a clear strategy or stop-loss.
🤑Quick Tip
Even if you’re only right 40% of the time, a 1:3 RRR can still make your strategy profitable.
In short: Mastering risk-reward helps you trade smarter and stay in the game longer—especially on fast-moving platforms like Binance.
