Risk/Reward Visualiser
Drag your entry, stop-loss, and take-profit levels on the interactive price ladder to instantly see your risk/reward ratio, breakeven win rate, and position sizing — all in one view.
Plan Your Trade
Interactive Price Ladder
Drag the coloured handles up or down to adjust your levels visually. The numbers update in real time.
Formula Breakdown
The visualiser calculates your risk/reward ratio and optimal position size using straightforward formulas. Here's the step-by-step breakdown using your current inputs:
💡 Your Calculation
What the Breakeven Win Rate Tells You
The breakeven win rate is the minimum percentage of trades you need to win at this R:R ratio to avoid losing money over time. For example, at 1:2, you only need to win 33.3% of your trades to break even. Any win rate above that percentage produces net profit. This is why many professionals prioritise R:R over win rate — a modest win rate with a strong R:R can be far more profitable than a high win rate with poor R:R.
R:R Ratio Reference Table
Compare common risk/reward ratios, their breakeven win rates, and which trading styles they typically suit. Your current ratio is highlighted.
| R:R Ratio | Breakeven Win Rate | Typical Style | Assessment |
|---|
⚠️ The High R:R Trap
A 1:5 R:R ratio looks attractive on paper, but if your take-profit is set at an unrealistic level, most trades will reverse before reaching it — resulting in a very low win rate that may not cover your losses. Always base your take-profit on technical levels (support, resistance, Fibonacci extensions), not arbitrary R:R targets. A realistic 1:2 setup that hits regularly is far more profitable than a 1:5 that rarely triggers.
Key Concepts
Risk/Reward Ratio
The R:R ratio compares the potential loss (distance to stop-loss) with the potential gain (distance to take-profit). A ratio of 1:2 means you stand to gain twice as much as you risk. It is the single most important metric in trade planning because it determines the minimum win rate needed for profitability.
Breakeven Win Rate
This is the percentage of trades you must win to neither make nor lose money over time. It is mathematically derived from your R:R ratio. At 1:1, you need over 50%. At 1:3, just over 25%. Knowing your breakeven helps you evaluate whether a setup is statistically viable for your historical win rate.
Trading Expectancy
Expectancy combines your win rate and R:R ratio into a single number showing your expected profit per unit risked. A positive expectancy means your strategy makes money over time. Even a 40% win rate is highly profitable with a 1:3 R:R because the average win far exceeds the average loss.
Position Sizing & Risk
Your position size should be determined by your risk tolerance, not by gut feeling. By setting a fixed risk percentage (e.g. 1% of your account) and using your stop-loss distance, you can calculate the exact lot size that limits your potential loss to a predefined amount on every trade.
✅ Key Takeaway
Most consistently profitable traders maintain a minimum R:R of 1:2 and risk no more than 1–2% of their account per trade. This combination means that even a 40% win rate produces steady long-term growth, while protecting against drawdowns during inevitable losing streaks.
Frequently Asked Questions
❓ What is a good risk/reward ratio?
Most professional traders aim for a minimum of 1:2, meaning the potential reward is at least twice the risk. However, the best ratio depends on your trading style — scalpers may use 1:1 with a high win rate, while swing traders often target 1:3 or higher. The key is that your R:R combined with your win rate produces a positive expectancy.
❓ How do I calculate the breakeven win rate?
The breakeven win rate is calculated as: 1 ÷ (1 + R:R Ratio) × 100. For example, with a 1:2 risk/reward ratio, the breakeven win rate is 1 ÷ (1 + 2) × 100 = 33.3%. This means you only need to win one-third of your trades to break even at this ratio.
❓ Should I always use the same risk/reward ratio?
Not necessarily. Different market conditions and setups may warrant different R:R ratios. What matters most is that your average R:R across all trades, combined with your win rate, results in a positive expectancy. Many traders set a minimum threshold (e.g. never below 1:1.5) but adjust upward based on the quality of each setup.
❓ What is the relationship between R:R and win rate?
They are inversely related for profitability. A higher R:R means you need a lower win rate to be profitable. At 1:1, you need over 50% wins. At 1:3, you only need over 25% wins. The key is finding a combination that produces positive expected value over time — there is no single "correct" pairing.
❓ How do I set realistic take-profit levels?
Base your take-profit on technical analysis — key support/resistance levels, Fibonacci extensions, or previous swing highs/lows. Avoid setting arbitrary targets just to achieve a high R:R. A realistic 1:2 that regularly gets hit is far more profitable than an unrealistic 1:5 that rarely triggers.
❓ What is trading expectancy and how does R:R affect it?
Expectancy measures your expected profit per unit of risk over many trades: (Win Rate × Average Win) − (Loss Rate × Average Loss). A positive expectancy means your strategy is profitable long-term. R:R directly impacts this — better ratios improve your expectancy even with modest win rates. Track your expectancy over at least 50–100 trades to get a reliable reading.
Related Tools & Resources
Use our other free trading tools together to plan, size, and manage every trade with confidence.
📊 Pip Calculator
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📐 Position Size Calculator
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🏦 Margin Calculator
Check required margin and leverage impact.