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Risk : reward ratio calculator
Pick your R:R, type your win rate, get the expectancy per trade and the projected return over 100 trades. The math is the same for every market.
The breakeven table
The break-even win rate for any R:R is just 1 / (1 + R:R).
Below it you lose money long-term, above it you make money. Higher R:R
means a lower breakeven - but also more losing streaks because winners
are rarer.
| R : R | Breakeven win rate | Comfortable WR target |
|---|---|---|
| 1 : 1 | 50.0% | 55%+ |
| 1 : 2 | 33.3% | 38%+ |
| 1 : 3 | 25.0% | 30%+ |
| 1 : 4 | 20.0% | 25%+ |
| 1 : 6 | 14.3% | 18%+ |
| 1 : 10 | 9.1% | 13%+ |
Why tgsignals chose 1 : 4
Anything below 1:2 forces a high win rate, which forces narrow stops, which forces overtrading on choppy days. Anything above 1:6 turns into a lottery: 8% win rates psychologically destroy traders even when the math works. 1:4 with a 25-30% target win rate is the sweet spot - survivable losing streaks, but a clear positive expectancy per trade.
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FAQ
What's a good risk:reward ratio?
There's no universal answer - it depends on win rate. A 1:1 R:R needs >50% win rate to be profitable; a 1:4 R:R only needs >20%. Most automated trend-following systems target 1:3 to 1:6 because higher R:R lets the system survive lower win rates that are mathematically easier to sustain.
How is breakeven win rate calculated?
breakeven_wr = 1 / (1 + R:R). A 1:2 setup needs 33.3% to break even. A 1:4 needs 20%. A 1:1 needs 50%.
What R:R does tgsignals use?
Fixed 1:4 across every market in our rotation. Every trade risks the same 0.5% of account, every winner targets 2.0% of account, no exceptions, no manual overrides.
Should I move my stop to breakeven after partial profit?
Statistically, no - the math says full bracket > moving stop in 80% of backtest cells we've measured. The 'breakeven move' protects ego, not capital. Set the bracket once, walk away.