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Day Trading: An Honest Definition and Survival Guide
TradeOlogy Academy
Calculator · Risk & Psychology

Risk-Reward Ratio Calculator

Enter your entry, your stop, and your target. Returns the risk-reward ratio and - the part that makes it actionable - the win rate that ratio requires to break even. At 3:1 you can be wrong three times out of four and still come out level; at 1:1 you need better than a coin flip. Works for shorts by putting the target below the entry. Not the same as the R-multiple calculator: this one plans a trade from a target, that one reviews a trade from its exit.

Read the lesson: Expectancy and the R-Multiple System
Risk / reward

Risk-Reward Ratio Calculator

Enter where you get in, where you're wrong, and where you're taking profit. Returns the ratio and the win rate that ratio needs to break even.

Inputs
Result
Risk-reward ratio
3.00 : 1
Generous - check the target is realistic, not just far away.
Breakeven win rate
25.0%
Win more often than this and the setup makes money over time.
Risk per share
$5
Reward per share
$15
A ratio is only as honest as the target. Moving the target further out improves this number on paper and lowers the odds of ever reaching it - the breakeven win rate above is what keeps that trade-off visible.

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