How to develop risk returns in trading strategies *
The world of cryptocurrency trade is a painting of its high volatility and rapid label fluctuations. With Postal Rewards Com, many traders are dravn to this high -speed and unpredictable environment. However, the development of a successful trade strategy in this case from the environmental channel without properly.
One major aspect of the profitable trading strategy is Unity and Remuneration. The ratio of RUD rash helps you ensure that you are cautious, it is a potential benefit.
What is the risk remuneration ratio?
The ratio of rice is a calculation used to increase the possible return of trade to the level of Assuses associated with it. It is expressed in percentage or in terms of funds (eg 1:10). Ityr's reward requires a lower risk, Vaiters reward requires ityk.
For example, if you trade with $ 100 and your strategy gives the estimated benefit of $ 200, you're 2: 1 it's for me that for more dollars that you have an investment, you can expect to get two dollars by accepting
Understanding the main ingredients
The rice remuneration ratio needs to understand several key components:
Positioning size : This is the amount of capital that is located for each trade. Higher positions increase the potential benefits only intensify.
* Stop Knowledge and Services Product 
: These are Cistria to manage risks and impose possible loss or profit restrictions.
Application : The amount of your account balance on the amount used for trade. The amount of Highr -raised funds can increase the return, but it also means if you are not passionate.
For calculating a risk -pay relationship
1 Allows you to proof of your position *: Decide how much capital you want to allocate to each.
20 make.
3
Calculate your possible reward : Property Profiit sum that can be RSK unit.
- Steps.
Example
Let's say you trade cryptocurrency and want to make a successful strategy. You decide to start with $ 100 in your account.
Position size: 10 units (100/10)
Stop-Level Level: Selling 20 USD (assuming rice pay ratio 2: 1)
Selection Profit Level: Relax for $ 40 (assuming extra 3: 1 rice pay)
Calculate a possible reward for RSK unit:
- Position Size X Risk -Return Ratio = Potential Reward
10 units \ (100/10) \* 2: 1 = 20 units
10 units \ (100/10) \* 3: 1 = 30 units
As you can see, this strategy requires rice wage ratio approximately 6.5: 1
Tips for developing your risk pay ratio *
Crate is an effective trading strategy:
- Start with conservative posts and Graduly increase
- Set clear stop losses and pickup levels to manage.
- Monitor transactions close and adjust the poles, suspension or drainage level.
By developing a good understanding of rice pay relationships and creating a good output strategy, Yu may increase in your internal crypto trade.