Risk Management Mastery·Beginner· 4 min

Risk-to-reward planning

Why 2R is the minimum most pros will even consider.

The idea

R = your distance in dollars. A '2R' means you're aiming to make 2× what you're risking. At 2R, you can be wrong 60% of the time and still be profitable.

How to check R:R BEFORE entry

Measure the distance to your logical vs the distance to your . If the ratio isn't at least 1.5R–2R, skip it. Better setups will come.

Trailing

Consider partial exits at 1R (move to breakeven, banking a free trade) and let the runner 3R+.

Watch it on the chart

Chart breakdown

Chart with a stop-to-target ratio measured with a visual ruler tool.

Key takeaways

Never plan a trade with less than ~2R potential.
< 1 means you need to be right 60%+ just to break even.
Partial at 1R + BE = free R.
is decided before , not after.

Quick check

Setup: stop is 8 points, target is 12 points. What's the R:R?

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