Free tool
Risk:reward calculator
Enter a signal's entry, stop loss and take profits to see the risk:reward of each TP, the win rate it needs to break even, and the money at stake. Or set a ratio and get the TP prices, the way TradeMirrorly's Risk:reward setting places them.
Risk:reward, every TP hit
1:2buy
- Risk at the stop
- $300.00
- Reward, every TP hit
- $600.00
- Stop distance
- 100 pips
- Break-even win rate
- 33.3%
| TP | Price | Pips | R:R | Reward |
|---|---|---|---|---|
| TP1 | 2,360.00 | 100 | 1:1 | $100.00 |
| TP2 | 2,370.00 | 200 | 1:2 | $200.00 |
| TP3 | 2,380.00 | 300 | 1:3 | $300.00 |
R:R = distance to the TP ÷ distance to the stop. Break-even win rate = 1 ÷ (1 + R), before spread, commission and slippage.
For a USD account. Contract sizes are typical and prices are samples: check your broker's contract specification and type today's price. TradeMirrorly itself uses your broker's own figures for every symbol.
How it works
How risk:reward is worked out
- 1
Risk
The distance from the entry to the stop loss. For a buy the stop is below the entry, for a sell above it.
- 2
Reward
The distance from the entry to each take profit.
- 3
R:R
Reward ÷ risk. 1:2 means the TP is twice as far from the entry as the stop.
- 4
Break-even win rate
1 ÷ (1 + R). At 1:2, more than 1 trade in 3 has to reach the TP to break even, before costs.
- With several TPs and the lots split equally, one trade per TP, the signal's ratio when every TP is hit is the average of the TPs' ratios.
- A ratio is arithmetic, not a forecast: it says nothing about how often a channel's TPs are reached.
How do I calculate risk:reward?
Divide the distance to the take profit by the distance to the stop loss. A buy at 2350 with the stop at 2340 and the TP at 2370 risks 10 to make 20: 1:2.
What is a good risk:reward ratio?
No ratio is good on its own: it only means something together with how often the trades reach the TP. A 1:1 trade has to win more than half the time to break even, a 1:2 trade more than a third, before costs. TradeMirrorly doesn't choose trades; it copies the signals you pick, with your ratios.
What does 1:3 mean?
The TP is three times as far from the entry as the stop loss. With $100 at risk, the TP is worth $300 if it's reached.
How does it work with several take profits?
Each TP has its own ratio. With the lots split equally, one trade per TP, the whole signal's ratio when every TP is hit is the average of them. If only TP1 is reached, the trades left open still decide the result.
Can TradeMirrorly set the TPs from a ratio?
Yes. In a channel's trade settings, Risk:reward places each TP at your ratio of the stop distance, like 1, 2, 3 (the last one repeats), when the signal has a stop loss. It can also place the stop from the TP instead. It works on MT4, MT5, TradeLocker and Match-Trader.
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Start the 3-day free trial, set your risk once, and switch on your channels. It sets up in about 3 minutes.