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.
The Definition
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.
Free Calculator
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.
Risk/Reward = Reward / Risk · Breakeven win rate = Risk / (Risk + Reward) - below this you lose money even when most trades win.
The Trade-Off
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.
| Risk / Reward | Breakeven Win Rate | What It Means |
|---|---|---|
| 1 : 1 | 50% | You must win more than half your trades just to break even |
| 1 : 1.5 | 40% | A small edge covers a sub-50% win rate |
| 1 : 2 | 33% | You can lose two of every three trades and stay flat |
| 1 : 3 | 25% | One winner can pay for three losers |
| 1 : 5 | 17% | Rare wins, but each one is large - common in trend trading |
The Real Problem
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.
Tracker Fx
Actual R:R, calculated for you.
From Ratio to Results
Connect a broker and Tracker Fx turns every closed trade into accurate risk/reward data automatically.
Every closed trade gets its realised risk/reward calculated from real entry and exit fills - no manual logging and no estimates.
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.
Tag trades to playbooks and see which setups actually deliver the ratio you designed them around and which ones fall short.
Spot the recurring gap between the R:R you intend and the R:R you take. This is usually where the leak is.
R:R feeds directly into expectancy. See whether your combination of ratio and win rate is genuinely positive over time.
Trades sync automatically, so your average R:R is never stale and never depends on you remembering to update a spreadsheet.
Supported Platforms
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 → 14-day free trial included
Bybit
Connects via read-only API key (Bybit Global). R:R calculated on Perpetuals and Spot, synced every 2 hours.
Learn about Bybit → 14-day free trial included
OANDA
Connects via the OANDA API. Forex, indices, commodities and metals - full history with R:R on every trade.
Learn about OANDA → 14-day free trial included
MetaTrader 4 & MT5
Connects via API to any MT4 or MT5 broker. No plugins and no CSV exports - realised R:R synced automatically.
Learn about MetaTrader → Requires a paid planTraders on Tracker Fx
Knowing your true average R:R changes how you exit trades.
"I thought I traded 1:3. My real average was 1:1.4 because I kept taking partial profits early. Seeing the actual number was the most uncomfortable and useful thing I have done as a trader."
"One setup looked great on win rate but the average R:R was 0.8. Tracker Fx made that obvious in about a minute. I stopped trading it and my month turned around."
"Pairing R:R with win rate per setup is the feature I did not know I needed. It ended an argument I had been having with myself for two years."
FAQ
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).
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.
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.
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.
Yes. Tracker Fx includes a 14-day free trial with full access to all journaling and analytics features. The free trial is available for all platforms except MetaTrader, which requires a paid plan.
Start Today
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.
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Automatic R:R14-Day Free TrialRead-Only AccessAll Platforms Except MetaTrader