Risk Reward Ratio Calculator
Your entry, your stop and your target, turned into a ratio and the win rate it needs.
Risk to reward
1 : 3.00
- Break-even win rate
- 25.00%
- Risk
- 0.00300
- Reward
- 0.00900
- Reward over risk
- 3.00x
Ask MindX GPT whether these are the right levels.
Ask MindX GPTAlphaMind reads the market with its own models and explains what it sees. These calculators are the arithmetic around that. This page runs in your browser. Nothing is sent anywhere.
The maths
Risk = | entry - stop | Reward = | target - entry | Ratio = reward / risk Break even = 1 / (1 + ratio)
The ratio on its own says nothing. Paired with a win rate it says everything: at 2:1 a strategy breaks even at 33.3%, and at 1:2 it needs 66.7%.
Worked example
Long at 1.0850 with a stop at 1.0820 and a target at 1.0940 risks 30 pips to make 90. That is 3:1, and it breaks even winning one trade in four.
What is a good risk reward ratio?
There is no universal number. A 1:1 strategy winning 60% of the time beats a 3:1 strategy winning 20%. The pair of figures is what matters, never either one alone.
How do I read the break-even win rate?
It is the share of trades you have to win for the strategy to make nothing at all. Above it you are ahead, below it you are behind, before costs.
Do trading costs change it?
Yes. Spread, commission and swap come out of the reward and add to the risk, so the real break-even sits above the figure shown here.
