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Risk reward calculator
Is the trade worth it? Enter entry, stop and target – see the risk/reward ratio, the win rate you need to break even and your expectancy in R.
Educational tool – not financial advice. Check contract specifications with your broker.
How it works
Risk / reward (R)
Potential gain divided by potential loss. Stop 2 away, target 5 away = 2.5R.
Break-even win rate
The win rate at which you neither win nor lose: 1 ÷ (1 + R). At 2R you only need 33 % winners.
Expectancy
Average result per trade in R: win rate × R − loss rate × 1. Positive = an edge over many trades.
FAQ
What is a good risk/reward ratio?
There is no universal best value. What matters is the combination with your win rate: 1.5R needs 40 % winners, 3R only 25 %.
What does the R-multiple mean?
R is the amount you risk on a trade. +2R means you made twice your risk, −1R means you lost the planned amount.
How do I calculate the break-even win rate?
Break-even win rate = 1 ÷ (1 + R). At 2R: 1 ÷ 3 = 33.3 %.
Track every trade automatically
The Trading Performance Pro journal calculates position size, R-multiple and 12 key metrics for every trade – in Excel or Google Sheets.
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