HomeCalculations & Concepts
Calculations & ConceptsLevel: Beginner
Samuel McCulloch
Head of Adara Academy & Trading division. Professional crypto trader with experience in capital markets, options and futures trading.


Budget size — how much money you’ve got to invest with.

Entry price — the price at which you buy into an asset.

Risk size — how much money you’re willing to give up in each losing trade.

Position size — how much of an asset you’re buying.

Target price — the price point you want to leave a position at.

R — number that represents how much risk you’re taking on relative to the reward of a trade. R = reward / risk.

Reward — the percent difference between your entry price and your target price.

Risk — the percent difference between entry price and your exit point, or stop loss point.

Win rate — number of winning trades / total number of trades.

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