Risk Reward Calculator
Calculate the mathematical expectancy of your trades. Aim for higher rewards than risks to stay profitable in the long run.
Trade Expectancy
Enter trade levels to calculate ratio.
Calculation Formula
Professional mathematical precision powered by SM Developers.
Strategy Tips
Professional Trading Insights
A 1:2 Risk-to-Reward ratio means you only need to be right 34% of the time to break even.
Don't just set a target; ensure the reward potential is realistic based on recent price action (ATR).
Precision Note: All calculations are rounded to 2 decimal places.
Professional traders often 'scale out' of positions at R1 and R2 to lock in gains.
Trading Deep Dive
Mastering the Concept
Risk/Reward Ratio (R:R) is a measure of the potential profit for every dollar risked. For example, a 1:3 ratio means you are risking $1 to potentially make $3.
Expectancy
Higher R:R allows you to stay profitable even with a low winning percentage.
Execution
Targets should be placed at logical structural levels, not arbitrary percentages.
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