can you reset your ipod touch and not lose apps

Not if you are talking about a soft reset, which is like rebooting your iPod. A soft reset is performed by holding down the power and home buttons simultaneously, until you see the Apple logo, then releasing both buttons.

If restore the iPod it is erased.

Before restoring you can transfer iTunes purchased to the computer by:

iTunes Store: Transferring purchases from your iOS device or iPod to a computer

You can redownload iTunes purchases by:

Downloading past purchases from the App Store, iBookstore, and iTunes Store