Implementation of risk ratio and reward in cryptom trading: Step by step guide

The world of crypto -trading has been increasingly poplar and competitive, and many of the investors are trying to maximize profits and minimize. One of the key strategies that can help you achieve this balance is the implementation of the bowl-date ratio within you. In this article, we will examine how we do, provide a detailed guide to calculating, management and optimization.

What is the risk ratio and reward?

The bowl-date ratio is permanent of the potential remuneration you expect to expect for each unit. It is a mezure of what you can expect from trade or investment that has compiled the amount of money the body of the body’s risk and reward ratios that are proportional to your losses and non -payment.

Why implement the risk ratio and reward?

The implementation of the Misk-stage ratio is basically in cryptom trading for several resonations:

1.

• Divesification : Well implemented ratio can help you diversify your portfolio by assigning your class or Capital Asset strategies.

– impulsive bets.

Calculating Risk Ra ratio and reward

Follow the steps to calculate the ratio of your reward:

• Determine your maximum risk tolerability : Calculate the percentage of the potential loss to be accepted in order to accept the trade.

• Set your expected profit

  : Determine what profit to spend or investment.

• Calculate the risk : Use a diversity formula to calculate your RSK:

Risk = (maximum loss / maximum gain) \* 100

For example, if you are traded with a crypto with a maximum loss of $ 10,000 and an expected profit of 20%, Whook has amazed the beauty of your ass:

Risk = ($ 10,000 / 0.2) \* 100 = 5,000,000%

• Determine your reward : Calculate your remuneration based on the expected profit.

Reward = expected gain \* (1 – risk)

For example, if you are trading with a crypto with an expected 20% profit and 10% rice, the reward is:

Reward = 0.2 \* 100 = 20%

• Create your risk and reward ratio : Combine your calculated rice, reward, maximum loss and expected profit for your ceremony.

Risk and Reward ratio = (maximum loss / maximum gain) \* (1 – risk)

For example::

Risk and Reward Ra ratio = (10 000 / 0.2) \* (1-5 000 000%) = 20%

Message of Risk and Rewards *

Consider the following strategies to maximize the ratio of your reward:

• DOlar-Cost average

  

  : Invest a fixed amount of money in regulars for regulars

• Location Velications : Increase or reduce post-dimensions for yourself

• Stop Orders : Set a stop of loss to limit your potential loss if the store does not perform.

• Securing : Use detention strategies to reduce brand volatility or protection against unexpected regulations.

Optimization of the risk ratio and reward

To optimize the ratio of your and reward, focus on focus factors:

1

• Strategies performance : Analyze the performance of different strategies and adjust accordingly.

• Assignment of capital : Implement your capital between different classes of assets based on your strategies to you.