We’ve looked at what the risk/reward ratio is and how traders can incorporate it into their trading plan. Calculating the risk/reward ratio is essential when it comes to the risk profile of any money management strategy.
What’s also worth considering when it comes to risk is keeping a trading journal. By documenting your trades, you can get a more accurate picture of the performance of your strategies. In addition, you can potentially adapt them to different market environments and asset classes.
Do you still have questions about calculating risk and reward? Check out our Q&A platform, Ask Academy, where the Binance community will answer your questions.