#RiskRewardRatio

For me, I always adhere to a goal of at least 1:3 as a risk-to-reward ratio. This means that I do not enter any trade unless the potential reward is at least three times greater than the expected loss.

What tools do I rely on?

I use the Fibonacci Retracement tool to determine my price targets (Take Profit) and stop loss levels (Stop Loss). I also use the ATR (Average True Range) indicator to assess market volatility and adjust levels accurately.

The impact of using this ratio on my trading

When I started strictly adhering to this ratio, I noticed a significant improvement in my results. Small losses no longer had a major impact on the account, while winning trades began to cover losses and maintain capital growth steadily.

Practical example: In one of my trades on BNB, the entry price was $310, the stop loss was at $305, and the target was $325. The ratio was about 1:3, and indeed the target was achieved, which boosted my confidence in this strategy.