Risk / Reward Calculator

What R:R actually tells you

A 1:3 setup with a 30% win rate is a more profitable system than a 1:1 setup with a 55% win rate. R:R is the lever that decides whether your edge is sustainable. Aim for R:R ≥ 2 on most setups. Below 1:1, even an 80% win rate eventually bleeds you to death via costs and slippage.

Break-even win rate

The minimum win rate you need on a given R:R just to not lose money (before fees). At 1:1 you need 50%. At 1:2 you only need 33.4%. At 1:3 you only need 25%. Higher R:R = bigger margin of error.

Expectancy

Expectancy tells you how much R you make on average per trade. Anything > 0R is a positive system. The bigger the number, the bigger your edge. Combine high R:R with realistic win-rate expectations — that's the game.