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Understanding Risk-Reward in Crypto Trades
When looking at a setup, one of the first things to define is your risk-reward ratio. This is simply how much you stand to lose versus how much you aim to gain. For example, if you consider a long on $DOGE at current levels around $0.07005, and your stop-loss is at $0.06900 with a target at $0.07200, you're risking about $0.00105 to make $0.00195. That's roughly a 1:1.85 risk-reward, which is generally a healthy starting point for any trade.
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While the math for R:R is sound, the example uses DOGE, which often moves on hype more than fundamentals or technicals. Good luck consistently hitting targets on that one with strict R:R.