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Risk-reward calculator
Enter your entry, stop and target to see the reward:risk ratio before and after fees. Add your win rate to see whether the setup makes money over time.
Direction
%
Use 0 to ignore fees%
From your journal, for this kind of setupReward:risk after fees1 : 2.60
Reward:risk on the chart1 : 3.00
Break-even win rate27.8%
Stop distance1.00%
Target distance3.00%
Expectancy per trade+0.26R
At a 35% win rate this setup makes about +0.26R per trade on average. You need to win at least 27.8% of the time to break even.
Fees turn a 1 : 3.00 chart setup into 1 : 2.60. Tight stops make this gap bigger.
How it’s calculated
R:R = |target − entry| ÷ |entry − stop|
Break-even win rate = 1 ÷ (1 + R:R)
Expectancy (R) = win rate × R:R − loss rate × 1
Position size cancels out, so the ratio only depends on where your entry, stop and target are.
Why fees change the ratio
On futures you pay a fee to open and another to close, on the full position value. On a loss the fees are added to what you lose; on a win they come off what you make. With a 1% stop and 0.055% fees, a 1 : 3 setup is really about 1 : 2.6. The tighter the stop, the bigger the gap.
Reading the result
- Break-even win rate: the share of trades you need to win just to not lose money at this ratio.
- Expectancy: the average result per trade in R (multiples of what you risk). Positive means the setup pays over time, if your win rate holds.
- Use a win rate from your own records for this kind of setup, ideally over 20 or more trades. A guess makes the expectancy a guess too.