Risk module · lesson 17 of 32

R instead of emotion

Calculate risk before entry and protect the day before emotion takes over.

3 min · 7 steps

  1. Step 1 · The unit of risk

    1R equals the distance to the stop.

    Entry 62 960, stop 62 590: $370 to the stop. That's 1R, the ruler for any trade's result.

    entry
    62 960
    stop
    62 590
    1R
    $370
    BTC· 15m · Sep 19–20, 2024real chart · Binance
    20:0000:3002:451sweep23target 63 850entry 62 960stop 62 5901R = $370
    zonesweepMSSentry
  2. Step 2 · A win in R

    A win is counted in the same R's.

    To the target 63 850: $890. That's $890 ÷ $370 = +2.4R.

    BTC· 15m · Sep 19–20, 2024real chart · Binance
    20:0000:3002:451sweep23target 63 850entry 62 960stop 62 5901R+2.4R
    zonesweepMSSentry
  3. Step 3 · A loss in R

    A stop gives −1R, not a “blowup.”

    BTC 1h, Mar 18, 2024: a short from 67 775, plan +2.9R. The 68 904 stop got hit first: exactly −1R, what you chose to risk.

    BTC· 1h · Mar 17–18, 2024real chart · Binance
    Mar 17Mar 18123stop 68 904entry 67 775target 64 533−1R
    zonesweepMSSentry
  4. Step 4 · Dollars vs. R

    The day is a loss in dollars and a win in R.

    You took the first trade with $100 risk, the second with $300. R shows the setup was fine, the risk was just floating.

    The trades happened on Sep 20, 2024 and Mar 18, 2024, R taken from the candles. The $100 and $300 risk figures are the example's assumption.

    The same two tradesscheme
  5. Step 5 · Without a stop

    Without a stop, R doesn't exist.

    There's an entry at 67 775, no stop — how many R is that? There's no answer, for a loss or a win: you set the ruler before the entry.

    BTC· 1h · Mar 17–18, 2024real chart · Binance
    06:0011:0016:0021:0012MSS 67 953
    zonesweepMSSentry
  6. Step 6 · Find it yourself

    Where does the trade give +1R?

    BTC 4h, Feb 24, 2024: a long from 51 438, stop 50 521. Tap the level.

    Practice on the chart

    This is a Find it yourself task: tap a candle or a level, and the lesson tells you right away if you got it.

    Create an accountThis step unlocks after sign-up. Your progress is saved.
    BTC· 4h · Feb 19–24, 2024real chart · Binance
    Feb 19Feb 21Feb 2312
    zonesweepMSSentry
  7. Step 7 · Rule

    Every trade goes in with a stop.

    to your Pact · checked

    Every trade has a stop.

    Your Pact checks the journal: a trade without a stop is a rule break, and your streak counts it.

    The R rulerscheme

Terms in this lesson

Lessons in this module

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