The risk-to-reward ratio is the ratio of risk to reward. I use 10% of the risk of my principal in exchange for a profit of 20% of my principal. That is 1:2. The risk-to-reward ratio is 2. The risk-to-reward ratio for each of my orders is It's 2. Enter 0.114*0.1-0.114=0.1026. When the price I bought dropped to 0.1026, it meant I lost 10% of my principal of 277. And conversely, 0.114*0.2+0.114=0.1368. It means that the price rises to 0.1368, and I get 20% profit of the principal of 277. So the risk-to-reward ratio of this order is 2. To put it simply, exchange 1R for 2R.
My concept of order planning is mainly to find the entry point. As long as I find the entry point, I can effectively get the price difference of the bottom and the increase. In other words, I have a good chance of making a 20% profit. The key point is to find the entry point that matches the moving average. After finding the entry point, you can calculate a stop loss of 10% of the price and a profit of 20% to make every order have a risk-to-reward ratio of 2. To put it simply, if you find the entry point, there will be no strong target with a bad risk-reward ratio.
