Understanding Risk-Reward in Practice

When assessing a trade, the risk-reward ratio is crucial: how much capital are you risking to potentially gain how much? For instance, with $US30 currently at 53732.41, if your stop-loss is at 53600 (132 points risk) and your target is 53950 (218 points potential reward), you're looking at roughly a 1:1.65 risk-reward, which is generally acceptable.