Enter your entry, stop, and target. See your reward-to-risk ratio, breakeven win rate, and expectancy per trade. Works on any market.
A 1:3 setup only needs a 25% win rate to profit, yet most traders still lose on it. Ratio, win rate, and expectancy are one system. This tool shows all three, so you know whether an entry is worth taking.
A ratio alone says nothing about whether a strategy makes money. You also need the win rate it demands and the edge it produces. Here’s what the calculator works out.
Reward targeted divided by risk taken. A 1:3 means you make three times what you’d lose. It sets the shape of the trade, not whether it wins.
The win rate that leaves you flat at a given ratio. At 1:3 it’s just 25%, so you can be wrong three times in four and still break even. Most traders never calculate it.
What an average trade returns once ratio and win rate combine. Positive expectancy is the only thing that compounds, and in R it holds across account sizes.
Wider targets raise your ratio but get hit less often, so a rare 1:5 can lose to a consistent 1:1.5. The right ratio is the one your win rate can support.
Most traders aim for at least 1:2, meaning two units of reward for every one at risk. But there’s no single right answer. A 1:1.5 with a 60% win rate beats a 1:4 with a 25% win rate. The good ratio is the one your real win rate can profitably support, which is exactly what the expectancy figure tells you.
At 1:2 your breakeven win rate is about 33%, so you need to win more than a third of your trades to come out ahead. At 1:3 it drops to 25%, and at 1:1 you need above 50%. Enter your numbers above and the calculator shows the exact breakeven for your setup.
Yes. Because the ratio compares two price distances, it’s unit-free and identical whether you trade forex, futures, stocks, crypto, or options. The dollar figures depend on your position size, which is why the risk input lets you convert the ratio into dollar reward and expectancy.
No. A wider target lifts the ratio but is reached less often, so past a point you win too rarely for the math to work. The goal isn’t the biggest ratio; it’s the combination of ratio and win rate that produces positive expectancy. A modest ratio you actually hit beats a huge one you rarely reach.
Expectancy is the average result of a trade once win rate and ratio are combined, expressed in R (multiples of the amount you risk). A positive expectancy means the strategy makes money over a large enough sample, even with losing trades mixed in. It’s the single most honest measure of an edge.
No. This is a free educational calculator. It doesn’t know your full situation and assumes fixed prices, no slippage, and no fees. Treat the output as a starting point and make your own decisions, ideally with a licensed professional.
This calculator needs an entry, stop, and target. SMRT Algo plots all three on your TradingView chart before the candle closes, with three take-profits, so your reward-to-risk is set the moment the signal fires. A coordinated 14-indicator system, no repainting.
Get SMRT AlgoThis risk/reward calculator is provided for informational and educational purposes only and does not constitute financial, investment, or trading advice. Outputs are based solely on the figures you enter and do not account for slippage, gaps, spreads, commissions, or the difference between an intended and an executed stop.
Trading and investing carry significant risk, and it is possible to lose money. Decisions to buy, sell, or trade any financial instrument should be made with the guidance of a licensed professional. Past performance does not guarantee future results.
Enter your email below to unlock your exclusive discount code — plus get our free Smart Money Cheatsheet covering the exact setups our members trade.
By signing up, you agree to receive marketing emails from SMRT Algo, including offers, product updates, and educational content. You can unsubscribe at any time. View our Privacy Policy.
Enter your email below to unlock your exclusive discount code and start 2026 with smarter trades.
Hurry! Offer expires soon!
