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LTC Perpetual Futures Contract
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Measure Reward-to-Risk Ratio (RRR)

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  • key Takeaways

1. The risk/reward ratio is used by traders and investors to manage their capital and risk of loss.
2. The ratio helps assess the expected return and risk of a given trade.
3. An appropriate risk reward ratio tends to be anything greater than 1:3.



  • How to Measure Reward-to-Risk (RRR) ?

1. Evaluate the potential price levels for your stop loss (SL) and profit target (PT)
2. Measure the distance between your entry and your stop loss (SL). This is your “Potential Risk“.
3. Measure the distance between your entry and your profit target (PT). This is your “Potential Reward“.
4. Divide the two: Potential Reward / Potential Risk.


  • RRR Calculation

1. Potential Risk = 66.24 - 63.73 = 2.51
2. Potential Reward = 63.73 - 54.97 = 8.76
3. RRR = Potential Reward / Potential Risk = 8.76/2.51 = 3.49
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Penafian

Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
financial_advisorLTCpotential_riskreward_to_riskrisk_managementRisk Managementriskrewardrisk_to_rewardRRRyaser_rahmati
yaser_rahmati
Juga pada:

Penafian

Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.