Trade Evaluation
Risk/Reward Calculator
Evaluate any trade setup by calculating your risk-reward ratio and the minimum win rate needed to be profitable.
2.00 R:R
Risk / Reward Ratio
50
Risk (pips)
100
Reward (pips)
33.3%
Min Win Rate
+0.50R
Expectancy
Understanding Risk:Reward
A 1:2 R:R means you risk 1 unit to gain 2 units. With a 1:2 R:R, you only need to win 33.3% of trades to break even. Higher R:R ratios allow profitable trading even with lower win rates.
Expectancy = (Win Rate × Avg Win) – (Loss Rate × Avg Loss)
Positive expectancy means the strategy is profitable over the long run, regardless of any individual trade outcome.