Risk/reward calculator
Check a trade plan before you place it: how much you can win for each unit you risk.
How it is worked out
Risk = |entry − stop|, reward = |target − entry|, R = reward ÷ risk. Break-even win rate = 1 ÷ (1 + R): below it, the strategy loses money over time.
Questions
What is a good risk/reward ratio?
There is no single good ratio: a 1:1 plan needs to win more than 50% of the time, a 1:3 plan only 25%. What matters is the ratio together with your real win rate.