Find out how often a setup must win to be worth taking. Free, private, runs in your browser.
Reward : risk (R) = |Target − Entry| ÷ |Entry − Stop|.
Break-even win rate = 1 ÷ (1 + R). Expectancy (in R) = Win rate × R − (1 − Win rate).
Example: risk 5 to make 10 is 2 : 1, so you break even winning 1 ÷ 3 = 33.3% of trades. At 1 : 1 you need 50%.
There is no single answer. A high ratio needs fewer wins, a low ratio needs a higher win rate. What matters is positive expectancy over many trades.
No. Fees and slippage raise the win rate you need, especially on small targets. Keep that in mind on short-term trades.
It is the average result per trade measured in units of risk. +0.2 R means you make 0.2 times your risk per trade on average.
Free to embed on your blog or site. Paste this HTML where you want the calculator to appear: