⚖️ 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.
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 3)
📊 Gextron traders aim for minimum 1:3 R:R on option trades.
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.
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.
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
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
⚡ 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.