Risk/Reward & Win Rate

Find the minimum win rate for your risk/reward ratio, or the minimum risk/reward ratio for your win rate, to achieve breakeven (no profit, no loss) over many trades.

Risk/Reward & Win Rate

If my trades risk/reward ratio is 1:, my win rate must be at least โ€” % that overall result of trades will be in breakeven (no profit, no loss).

If my trades win rate is % my risk/reward ratio must be at least 1:โ€” that overall result of trades will be in breakeven (no profit, no loss).

Frequently Asked Questions

Risk/reward ratio (R:R) compares how much you risk on a trade to how much you aim to gain. For example, 1:2 means you risk 1 unit to make 2. A higher R:R can allow a lower win rate and still be profitable.

For breakeven, your win rate must equal 1 รท (1 + R). So for 1:2 risk/reward, you need at least 1/(1+2) โ‰ˆ 33.33% wins to break even. The calculator does this for any ratio.

Good risk/reward (e.g. 1:1.5 or better) means you can be profitable even with a win rate below 50%. Poor R:R (e.g. 1:0.5) requires a very high win rate and is harder to sustain.

It depends on your average R:R. With 1:2, you need above about 33% wins. With 1:1, you need above 50%. The calculator shows the exact breakeven win rate for your ratio and vice versa.

Enter your typical risk/reward ratio (e.g. 1:1.5) to see the minimum win rate for breakeven. Or enter your win rate to see the minimum R:R needed. Use the results to set targets and stops.

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