There are many approaches to measuring the Rsk reward ratio, including using pips, percentages, or even based on the chart itself such as candlesticks or other indicators. However, the most commonly used is the ratio 2: 1 or 1: 1.
The ratio of 2: 1 means that we are giving up risk 2 times greater than profit. If for example we are targeting a profit of 30 pips, then SL is installed at a distance of 60 pips from the entry. Or for example, if we set a maximum loss of 1%, then the profit target is 0.5% of the balance. For 1: 1, just calculate the ratio using the same method.