What is the risk reward ratio calculator?
The risk-reward ratio compares potential profit to potential loss on a trade. A 3R setup means you risk 1 unit to make 3.
When to use it
Pre-trade screening - if a setup is below 1.5R you usually need a >65% win-rate just to break even after costs.
Formula
R Multiple = Reward Pips / Risk Pips. Break-even win rate (%) = 100 / (1 + R).
Worked example
Stop at 20 pips, target at 60 pips → 3R. Break-even win-rate = 100 / 4 = 25%. Anything above 25% is profitable expectation.
FAQ
What R-multiple do professionals target?
Most discretionary traders aim for 1.5R–3R minimum on entry. Below 1R requires extremely high accuracy that's rare to maintain.
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