R base take profit#734

In trading suppose I put 10 dollar on a trade with a sl of losing this 10 dollar this -1R and If I wish to close this trade with 10dollar which is +1R and want to close with 20 dollar profit which will be +2R .I request you to make take profit level with R based system this will be optional but this is a ver good system for taking profit.

Here is a group and mostly groups use R based trading tp sl

Damn looks like a lot of people are newbies. Ok, I will explain about R in details.

1️⃣ What is “R”?
Simply put, 1R is your Unit of Risk. It is the maximum amount of money you are willing to lose on a single trade.

• If you decide that you are okay with losing $10 on a trade, then 1R = $10.
• If you decide that you are okay with losing $100 on a trade, then 1R = $100.

When a trader says, “I made 3R on that Bitcoin trade,” they mean they made 3 times the amount they risked.

In the 1st picture, you can see I’m doing a TP/SL setup for a long position on BTC.

I enter the stop loss (SL) price in the configuration windows, and Bitget shows me the estimated loss if this signal hits SL ~ 37$.

➡️ 1R = 37$

2️⃣ Why does it must be 1R for the estimated loss?

We want that to keep it simple

• R = Unit of Risk
• Every amount of estimated loss of 1 single trade = 1R

You will decide how much you want to risk for a single trade. Simply by putting the price of SL, you will see the estimated loss. That’s your 1R, even if it’s 37$ or 3700$, still an amount to lose if the trade gets stopped with SL triggered.

3️⃣ Profit +2R, what does it mean?

You can see in the 2nd picture, I enter a TP price, it shows estimated profit 60$.

At the same time, I edit the estimated loss to $30.

So you can clearly see that:

• 1R = 30$
• The estimated profit is double the estimated loss ($60 to $30)

First, you need to understand what these numbers mean.

• SL: If this position doesn’t go to the price you want, and at some moments, it will hit your SL (Stop loss) => You lose 30$ (1R)
• TP: If this position goes to the price you want, and at some moments, it will hit your TP (Take profit) => You win 60$

So obviously you will earn 60$ if this hits your take profit point, and your position will close => Your balance +60$

➡️ By setting up TP/SL, you are making a configuration: Risk 30$ (1R - If this hits SL), to earn 60$ (2 times the risk - If this hits TP)

➡️➡️ 60$ = 2 30$ => Your profit is 2R (2 30$)

That’s how you put a Risk/Reward ratio on a single trade. You can not keep trying to close manually all the time, only if you know what you’re doing.

Most of the newbies getting liquidated for that reason - They don’t care about Risk/Reward ratio for a long run, only care about the number running on the screen to get dopamine of doing gambles.

• You need an entry point to exit if the market turns opposite to what you think (SL)
• You need an entry point to exit if you have good profit (TP)