Risk:reward calculator
Plan a trade before you take it. See your reward to risk, the win rate you need to break even, and the expected value of the setup.
Your trade plan
Fees are applied on entry and exit, so the ratio shown is net of costs. For education and risk planning only. Not financial advice or a buy or sell signal.
How the risk:reward ratio works
The ratio compares what you stand to gain with what you stand to lose. A trade that risks 1 to make 3 only needs to win one time in four to break even. Reward to risk and win rate always work together.
Break-even win rate = 1 / (1 + Reward : risk)
Expected value (in R) = Win rate x R – (1 – Win rate)
A good ratio is not enough
A 3:1 target that is rarely reached loses money. Judge a setup by the ratio and by how often it really works, which a trade journal shows over many trades.
What is R?
1R is the amount you risk on a trade. A win of 2R pays twice what you risk. Thinking in R lets you compare trades of different sizes.
Place the stop first
Choose your stop where the idea is proven wrong, then see if a realistic target gives a worthwhile ratio. Do not squeeze the stop to improve the number. Read our stop-loss guide.
Stop calculating by hand. Let the journal do it.
ManageLoss Pro imports your trades from Binance or CSV, shows your win rate and losing streaks, and writes a plain-English review of your habits every week.
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