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Risk / Reward Ratio

The risk/reward ratio
decides if you survive.

Win rate gets all the attention. Risk/reward is what actually keeps you in the game. Here is how to calculate it, the win rate every ratio needs to break even, and why your real R:R is never what you planned.

Open the calculator Track R:R automatically
1:3
Needs ~25% win rate
Auto
R:R per trade
7-day
Free trial
The definition

What the risk/reward ratio actually measures.

One number that tells you whether a trade is worth taking before you take it.

The risk/reward ratio compares how much you can lose on a trade against how much you can gain. A ratio of 1:3 means you are risking one unit to make three.

Risk is the distance between your entry price and your stop loss. Reward is the distance between your entry price and your target. Divide the reward by the risk and you have the ratio.

It is the single most important number in trading because it sets the win rate you need. A high ratio lets you be wrong more often and still come out ahead. A low ratio forces you to be right almost every time.

Risk / Reward = Amount You Risk : Amount You Aim To Win
Free calculator

Calculate any trade right now.

Enter how much you risk and how much you aim to make. See the ratio and the win rate you need to break even.

Risk/reward calculator

Enter the amount you put at risk and the amount you aim to win. Works the same in dollars, pips or points.

1 : 2.0
Risk / reward
33.3%
Breakeven win rate
1 / 2
Risk / reward entered

Risk/reward = Reward / Risk. Breakeven win rate = Risk / (Risk + Reward) — below this you lose money even when most trades win.

The trade-off

Every ratio has a win rate it demands.

This is why "just aim for higher R:R" is incomplete advice. A bigger target means a lower hit rate. The maths has to balance.

The real problem

Your planned R:R is not your actual R:R.

Most traders plan a clean 1:3 and then cut winners early and let losers run past the stop. The gap between the plan and the result is where accounts quietly bleed out.

Tracking it by hand

You only see the plan, never the result.

You record the R:R you intended, not the one you got
Early exits and moved stops never make it into the sheet
No reliable average R:R across hundreds of trades
Impossible to see which setups actually deliver their R:R

Tracker Fx

Actual R:R, calculated for you.

Realised R:R calculated from real fills on every trade
Average R:R per setup, per symbol and per session
See the gap between the R:R you plan and the one you take
Paired with win rate so you know if the edge is real
From ratio to results

R:R only matters if you measure the real one.

Connect a broker and Tracker Fx turns every closed trade into accurate risk/reward data automatically.

Automatic R:R

Every closed trade gets its realised risk/reward calculated from real entry and exit fills — no manual logging and no estimates.

Win rate paired

Average R:R shown next to win rate and profit factor, so a 1:4 ratio with a 10% hit rate is exposed instead of celebrated.

R:R per setup

Tag trades to playbooks and see which setups actually deliver the ratio you designed them around and which ones fall short.

Planned vs actual

Spot the recurring gap between the R:R you intend and the R:R you take. This is usually where the leak is.

Expectancy built in

R:R feeds directly into expectancy. See whether your combination of ratio and win rate is genuinely positive over time.

Always current

Trades sync automatically, so your average R:R is never stale and never depends on you remembering to update a spreadsheet.

Supported platforms

Real R:R from your real trades.

Connect your account and risk/reward is calculated automatically from then on. No CSV files, no imports.

cTrader

Connects via the official cTrader API. Full history imports on connection and R:R is calculated on every new trade.

Learn about cTrader →
Bybit

Connects via read-only API key (Bybit Global). R:R calculated on Perpetuals and Spot, synced every 2 hours.

Learn about Bybit →
OANDA

Connects via the OANDA API. Forex, indices, commodities and metals — full history with R:R on every trade.

Learn about OANDA →
MetaTrader 4 & 5

Connects via API to any MT4 or MT5 broker. No plugins and no CSV exports — realised R:R synced automatically.

Learn about MetaTrader →
FAQ

Common questions.

Everything you might want to know about risk/reward.

What is the risk/reward ratio?

The risk/reward ratio compares how much you stand to lose on a trade against how much you stand to gain. A 1:3 ratio means you risk one unit to make three. It is calculated as the distance from entry to stop loss (risk) divided into the distance from entry to target (reward).

How do you calculate the risk/reward ratio?

Risk is the absolute distance between your entry price and your stop loss. Reward is the absolute distance between your entry price and your target. Divide reward by risk to get the ratio. Entry 100, stop 98, target 106 gives a risk of 2, a reward of 6, and a risk/reward ratio of 1:3.

What is a good risk/reward ratio?

There is no single good number because it depends on your win rate. A 1:1 ratio needs a win rate above 50% to be profitable, while a 1:3 ratio only needs roughly 25%. The ratio that matters is the one that pairs with a win rate you can actually sustain over hundreds of trades.

Why is my actual R:R different from my planned R:R?

Because exits rarely follow the plan. Traders take profit early, move stops, or close on emotion. The plan might say 1:3 but the realised average is often far lower. Tracker Fx calculates the real ratio from your actual fills so you can see and close that gap.

Is there a free trial?

Yes. Tracker Fx includes a 7-day free trial with full access to all journaling and analytics features. Card required, cancel anytime from your account settings before day 7 to avoid being billed.

Stop guessing your R:R.
Measure the real one.

Connect cTrader, Bybit or OANDA and Tracker Fx calculates the realised risk/reward of every trade automatically — paired with win rate so you finally know if the edge is real.

7-day free trial. Card required, cancel anytime.