Risk/reward compares planned gain versus loss if stopped out. If you risk $100 to target $200, that is often called 1:2 reward-to-risk or “2R” relative to 1R risk. The same framing applies to BTC, ETH, and alts once stops and targets are in price space you actually trade.
Ratio alone does not make an edge
Wide targets look attractive, but if wins are rare, expectancy can still be negative. You need both win rate and average win/loss to judge robustness.
Tooling
Use the risk/reward calculator to translate entry, stop, and target into a ratio quickly.
For a visual matrix of win rate vs payoff, see the win rate vs risk/reward matrix.
Translating charts into R-multiples on BTC or alts
Once entry, stop, and first target are defined in price space, measure risk in ticks or dollars consistently. The ratio is a planning summary, not a guarantee that price will honor your target.
Staged targets and partials
If you scale out, define how partial exits change the effective R still at risk. Many journals mis-book partials as “full wins” too early.
- Write planned partials before entry.
- Recompute R after each partial.
- Keep worst-case stop unchanged unless rules say otherwise.
Pairing ratio with location
Strong R numbers on paper mean little if the stop sits in random noise. Combine ratio discipline with structure: invalidation should make sense on the chart, not only in the spreadsheet.