Risk Reward Ratio Calculator (Free) | AlgoBars

Risk reward calculator

Free risk-reward
calculator

The short answer

The reward-to-risk ratio is the distance to your target divided by the distance to your stop. The break-even win rate is 1 ÷ ( 1 + R). With a 1:2 setup you break even winning about 33% of trades, before costs.

Last updated · Trading involves risk of loss.

More answers

Calculators are for education. Check figures with your broker, whose contract sizes and conversion rates may differ. Trading involves risk of loss.

Questions

Simple answers.

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What is a good risk-reward ratio?

There is no single answer: it depends on your win rate. A 1:2 ratio breaks even at about a 33% win rate, before costs.

What is the break-even win rate?

1 ÷ ( 1 + reward-to-risk ratio).

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