RiskRewardRatio is your main guideline in trading.
In the world of trading, without understanding the risk to reward ratio (Risk/Reward Ratio) — it's like driving with your eyes closed 🚗💥
🔍 What is this? Risk/Reward Ratio (RRR) — this is the ratio between:
potential loss (риск),
and the expected profit ( reward) for the transaction.
Example: If you risk $100 for a potential profit of $300, then RRR = 1:3.
🧠 Why is this important?
📌 Even with 40% profitable trades, you can still be in the black — if RRR is 1:2 or higher.
📌 This is a filter for entering the market. Poor ratio? Skip the trade.
📈 How to use?
Define the entry point, stop-loss, and take-profit.
Calculate: > RRR = Potential Profit ÷ Potential Loss
Evaluate: RRR 1:2 and above — 👍
RRR 1:1 or lower — ⚠️ not the best choice
✅ RRR is not a guarantee of success, but it is the foundation of discipline and survival in the market. Trade smart, not often 🧘♂️ #Risk Strategies in Downtrend
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RiskRewardRatio is your main guideline in trading.
In the world of trading, without understanding the risk to reward ratio (Risk/Reward Ratio) — it's like driving with your eyes closed 🚗💥
🔍 What is this?
Risk/Reward Ratio (RRR) — this is the ratio between:
potential loss (риск),
and the expected profit ( reward) for the transaction.
Example: If you risk $100 for a potential profit of $300, then RRR = 1:3.
🧠 Why is this important?
📌 Even with 40% profitable trades, you can still be in the black — if RRR is 1:2 or higher.
📌 This is a filter for entering the market. Poor ratio? Skip the trade.
📈 How to use?
Define the entry point, stop-loss, and take-profit.
Calculate: > RRR = Potential Profit ÷ Potential Loss
Evaluate:
RRR 1:2 and above — 👍
RRR 1:1 or lower — ⚠️ not the best choice
✅ RRR is not a guarantee of success, but it is the foundation of discipline and survival in the market. Trade smart, not often 🧘♂️ #Risk Strategies in Downtrend