Calculate Risk Reward Ratio: A Trader's Guide
1 min read
Learn how to calculate risk reward ratio with practical DeFi examples. Use our simple formula to improve your trading strategy and copy smart money wallets.
| Trade Parameter | Example Data Point (from Wallet Finder.ai) | Your Actionable Step |
|---|---|---|
| Entry Price | Top wallet's average buy-in is $0.0050 | Set your market or limit buy order near this level. |
| Stop-Loss Price | Recent swing low support is at $0.0045 | Place your stop-loss just below support, at $0.0044. |
| Target Price | Wallet's history shows sells after a 150% gain | Calculate your take-profit target at $0.0125. |
| Final Ratio | Risk: $0.0006 | Reward: $0.0075 | Execute the trade with a favorable 1:12.5 RRR. |
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