Calculate Risk/Reward Ratio
Risk/Reward Ratio
1:0.00
0 pips risk / 0 pips reward
Position Analysis
$0.00
0 pips × 1 × 0.1 lots
$0.00
0 pips × 1 × 0.1 lots
50%
$0.00
(50% × $0.00) + (50% × $0.00)
Risk/Reward Basics
The Risk/Reward ratio compares the potential loss (risk) to the potential gain (reward) of a trade. It's expressed as 1:R, where R is how many times greater the reward is than the risk.
1:2 or higher is considered favorable
1:1 is break-even with 50% win rate
Below 1:1 requires high win rate
Win Rate & Profitability
| Win Rate | Required R:R |
|---|---|
| 40% | 1:1.5+ |
| 50% | 1:1+ |
| 60% | 1:0.67+ |
| 70% | 1:0.43+ |
The table shows minimum R:R ratios needed for profitability at different win rates.
Trading Tips
- •Aim for trades with at least 1:2 risk-to-reward ratio
- •Never risk more than 1-2% of your account on a single trade
- •Expected value is the best indicator of a trade's long-term profitability
- •Consider moving stop loss to breakeven when your trade is in profit
Flow Execution helps you set precise stop loss and take profit levels with predefined risk-reward ratios, improving your trading consistency.
Try Flow Execution