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Risk/Reward
Calculator

R:R Ratio · Break-even Win Rate · Expected Value · Trade Analysis
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Enter Entry, Stop Loss & Take Profit Price
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R:R Ratio
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Risk (SL pips)
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Reward (TP pips)
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Break-even Win Rate
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Max Loss
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Max Profit
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Risk vs Reward Visual
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TP
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Enter Risk & Reward in Pips Directly
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R:R Ratio
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Break-even Win Rate
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Loss if SL
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Profit if TP
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Expected Value (EV) — Is Your Strategy Profitable?
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EV per Trade
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Monthly EV
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Break-even Win Rate
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R:R Ratio
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Win RateEV/TradeMonthly (${document.getElementById?'':''} trades)Annual
Trade Series Simulator — Probability of Outcomes
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Expected Final Balance
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Expected P&L
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Break-even Win Rate
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Worst-case Drawdown
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TradeResultP&LBalance
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Why Risk/Reward Ratio Matters

Risk/reward ratio is the foundation of every profitable trading strategy. A 1:2 R:R means your potential profit is twice your potential loss. With 1:2, you only need to win 34% of trades to break even — meaning you can be wrong most of the time and still be profitable.

Most professional traders focus more on R:R than win rate. A strategy with 40% win rate and 1:2 R:R outperforms a 60% win rate strategy with 1:0.8 R:R over the long term.

FAQ

What is a good risk/reward ratio?
A minimum of 1:1.5 is recommended, with 1:2 being the standard for most strategies. At 1:2, you break even with just 33% win rate. Higher R:R ratios (1:3, 1:5) allow lower win rates and are preferred by swing and position traders who use wider stops and larger targets.
What is expected value (EV) in trading?
EV = (Win Rate × Average Win) - (Loss Rate × Average Loss). A positive EV means the strategy is mathematically profitable over many trades. For example: 45% win rate, $200 win, $100 loss → EV = (0.45 × $200) - (0.55 × $100) = $90 - $55 = +$35 per trade.
How does R:R apply to FTMO challenges?
For FTMO with 10% profit target and 10% max drawdown: you need a positive EV strategy. A 1:2 R:R with 40% win rate gives EV > 0. Combined with 1% risk per trade, you need ~25 winning trades on average to reach the 10% target — achievable in 4–8 weeks of active trading.

* All calculations assume fixed position sizes and do not account for compounding, spread costs, or slippage. Backtesting with historical data is always recommended before live trading.