Risk & position sizing
Compare reward with risk, and read off the win rate that ratio needs to break even.
Compare reward with risk, and read off the win rate that ratio needs to break even. The page states the equation, the units it expects and the rounding it applies, so the result can be reproduced by hand.
A calculator gives you a number. This one feeds the next: account to risk, risk to position size, position size to the trade, and the trade to expectancy, drawdown and risk of ruin.
See the performance tools →The break-even win rate is what a ratio actually demands of you. It is the only way to judge whether a ratio is good without also knowing the strategy.
Risking 100 to make 200:
So a 1:2 trade needs to work only a third of the time — but a target twice as far away is reached less often. Widening the target moves both numbers.
None in isolation. A 1:1 needs a 50% win rate, a 1:3 needs 25%. Which is better depends entirely on which win rate your strategy actually achieves.
Partial exits, stops moved to break-even, and costs. Compute R from closed trades rather than from intentions and the gap becomes visible.
Yes, above a 50% win rate before costs. It is a demanding threshold — most strategies that clear it consistently do so on short holds where the costs then eat the margin.
A calculator answers one question and raises the next. These are the ones this figure feeds into.
The move required to cover spread, commission and financing before anything is profit.
Average outcome per trade from win rate and average win and loss. The number win rate hides.
Your hit rate, and the rate a given risk/reward needs before it earns anything.
Risk/Reward Calculator · rounding shown to the precision displayed