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    Risk/reward calculator

    Ratio of a trade plan and the win rate you need to break even with it.

    Example inputs, not market prices: change them to your trade.

    Result

    Risk/reward

    1:2.5

    Break-even win rate
    28.57%
    Risk
    2
    Reward
    5
    Expectancy per trade (R)
    +0.4R

    How it is computed

    Ratio = |Target − Entry| ÷ |Entry − Stop| · Break-even win rate = 1 ÷ (1 + Ratio)

    The ratio compares what the trade can make with what it can lose. The break-even win rate is the share of winners at which this plan neither wins nor loses over time.

    Worked example

    Inputs

    Direction
    Buy (long)
    Entry price
    100
    Stop loss price
    98
    Take profit price
    105
    Win rate (%)
    40

    Result

    Risk/reward

    1:2.5

    Break-even win rate
    28.57%
    Risk
    2
    Reward
    5

    Computed on the server by the same code as the form above (calculator table 2026-10-04.1).

    Around economic releases

    Many prop firms restrict trading around high-impact releases. Check the next ones before you size a trade.

    Open the economic calendar

    Questions

    Is a higher ratio always better?

    Not on its own: a far target is reached less often. The break-even win rate tells you what hit rate the ratio needs.

    What does expectancy in R mean?

    The average result per trade in units of risk. With your win rate entered, +0.25R means you make a quarter of your risk per trade on average.

    Does it work for short trades?

    Yes: choose Sell; the stop must then be above the entry and the target below.

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    A calculation, not a forecast. Not investment advice.