> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gextron.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk & Reward

> Structure trades with favorable risk/reward using Gextron’s levels and targets.

# ⚖️ Risk & Reward

Successful trading isn’t about winning every trade — it’s about making sure your **wins are bigger than your losses**.\
Gextron makes this easier by giving you **objective levels and targets** to anchor your risk/reward (R:R) calculations.

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## What is Risk/Reward?

* **Risk** = how much you’re willing to lose if the trade fails
* **Reward** = your profit target if the trade works
* Expressed as a ratio (e.g. **1:3 R:R** = risking $1 to potentially make $3)

> 📊 Gextron traders aim for **minimum 1:3 R:R** on option trades.

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## Using Gextron Levels for Risk

* Place stops **just beyond Key Levels** (P-Trans, N-Trans, or Gamma walls).
* This ensures you’re out quickly if the market invalidates your setup.
* Example: If you enter long above P-Trans, stop goes just below N-Trans.

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## Using Price Targets for Reward

* Set profit targets at **daily or weekly Price Targets**.
* Scale out in zones where Gextron shows pressure (Gamma walls, resistance bands).
* Let a portion run if higher targets are in play.

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## Example Trade

* SPX above P-Trans at 5200 → bullish bias
* Daily Price Target = 5250
* Risk = 20 points (stop at 5180)
* Reward = 50 points (target 5250)
* R:R = **1:2.5** → trade only makes sense if flow/tape are strongly bullish

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## Best Practices

* Never enter trades with less than **1:2 R:R**
* Reduce position size instead of moving stops wider
* Use Gextron’s **levels + targets + flow** together to validate setups

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⚡ **Key Takeaway:** With Gextron, your edge comes from combining **defined risk** (levels) with **clear reward zones** (targets) so you only take trades where the math works in your favor.