How To Implement A Risk-Reward Ratio In Trading

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The world of cryptocurrency trade is rapid and constantly evolved. . An important strategy used by experienced dealers is the implementation of a risk mode ratio, which is also referred to as “stop loss” or “risk management” approach. In this article you give tips on flying and managing risks.

What is a risk-read ratio?

A risk income ratio also knows that it is calculated by shared the potential reward by the maximum amount that can be lost.

For example if you

How to implement a risk-read ratio

Strategy, follows the following steps:

• Are you looking for short -term profits or long -term profits? Are you trying to maximize your returns or minimize losses?

• This is typically calculated using a formula as follows:

Risk = reward / (1 + stop-loss percentage)

The performance of the potential of potential reward used to calculate the stop loss.

3.

• Consider your business : Continuously monitor your business to ensure that you are pursuing your planned strategy.

Types of risk yields

Trade:

* 2: 1 ratio

:

* 3: 1 or 4: 1 ratio ::

* STOP -LOSS percentage (SL%) : The common SL% values ​​include:

* 20-50%

* 30-60%

* 40-70%

Tips for managing risks

Risk:

* Position size : Avoid taking too much risk by setting

* STOP-LIFS-level : Reface the clear stop loss values ​​with which potential losses are placed in every trade.

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Diploma

The implementation of a risk yield ratio is an essential step in the treatment of risks and maximizing returns in cryptocurrency trading. . Remember to stay discipline

Liability exclusion

This article only serves for information purposes and should not be regarded as investment advice. The cryptocurrency trade carries considerable risks, including loss of order, and may not be suitable for all investors.

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