AstroDunia
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Trade planningExpectancy basics

Risk–Reward Ratio (Quick)

Enter distances or prices. We’ll compute your R:R, the breakeven win-rate, and a quick expectancy preview—then visualize both.

R:R ratioBreakeven win-rateExpectancy (R)

Inputs

Entry → Stop (pts, $, ticks)

Entry → Target (same units)

Used only for expectancy preview.

Results

Risk ⇄ Reward
2.00 : 1
RiskReward

Ratio is Reward ÷ Risk. Example: 2.00 : 1 means your target is 2× your stop distance.

Breakeven win-rate
33%
33.33%
p = 1 / (1 + R)
Expectancy preview (per trade)
0.500 R

Assumes AvgLoss = 1R and AvgWin = R. Formula: ER = p·R − (1−p).

Educational only—factor in commissions, spread, and slippage when using live orders.

Why R:R & breakeven matter

Risk–Reward (R:R): expected return per unit of risk; e.g., risk $100 to make $300 = 1:3 (0.33). A lower ratio value (e.g., 0.33) means more potential reward than risk.

Formulas used
RR = Reward ÷ Risk • Breakeven win-rate = 1 ÷ (1 + R) • Expectancy = Win% × AvgWin − Loss% × AvgLoss.

Many traders aim for setups around 1:2 or better, but R:R is just one tool—position sizing and risk caps (e.g., 1–2% per trade) still matter.

Note: transaction costs and slippage affect realized results; factor them into averages and sizing.

Want deeper sizing & expectancy? Try Win-Rate & Risk–Reward.

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