Choose the amount at risk.
Example: 1% of a 10,000-unit account equals 100 account units or 1R.
FREE TRADING TOOL · TRADE PLANNING
Risk Reward Calculator
Compare the distance to your stop with the distance to your target. See the planned R:R, theoretical break-even win rate and optional account impact before you place the trade.
Calculated in your browser. Values are not sent to BTI.
PLANNED RISK : REWARD
1 : 2.00Long · 1.08500 entry
RISK DISTANCE0.00500
REWARD DISTANCE0.01000
BREAK-EVEN WIN RATE33.33%
ACCOUNT RISK100 account units
POTENTIAL REWARD200 account units
RESULT AT TARGET+2.00R
At 1.00% account risk, this plan risks 100 account units for a potential 200 account units before trading costs.
Educational calculator. It does not assess setup quality, fill probability, spread, slippage or future performance.
THE R:R FORMULA
Measure the plan in comparable units.
Risk is the distance from entry to stop. Reward is the distance from entry to target. Dividing reward by risk turns different prices and markets into the same planning language.
RISK DISTANCE| Entry − stop |
REWARD DISTANCE| Target − entry |
RISK : REWARD1 : (Reward ÷ risk)
TAKE PROFIT1.09500
REWARD+100 points · +2R
ENTRY1.08500
RISK−50 points · −1R
STOP LOSS1.08000
RATIO & BREAK-EVEN RATE
Higher reward lowers the theoretical win rate needed.
The figures below exclude spread, commissions and slippage. They describe mathematical break-even, not the probability that a target will be reached.
Risk : RewardBreak-even win rate10 trades at break-even
1 : 0.566.67%≈ 7 wins
1 : 150.00%5 wins
1 : 233.33%≈ 4 wins
1 : 325.00%≈ 3 wins
FROM RATIO TO POSITION SIZE
A good ratio does not decide how large to trade.
First define the maximum account risk. Then use the stop distance and the instrument's value per price movement to calculate position size.
Place the stop where the idea fails.
Measure from the planned entry to that technical invalidation level.
Let size adapt to the stop.
A wider stop requires a smaller position when account risk stays fixed.
BTI CONNECT
Plan risk directly on the MT5 chart.
CONNECT turns entry, stop and target levels into a visual trade plan. Review the ratio, calculate size from your risk rules and prepare the order without switching between disconnected tools.
Visual levels
Move entry, stop and target lines directly on the chart.
Automatic sizing
Translate account risk and stop distance into position size.
Risk preview
See money, percentage and R before execution.
Planned orders
Keep the calculation beside the market context.
BEFORE YOU ACCEPT THE RATIO
Make sure the number represents a real plan.
- 01VALIDATE
Use a stop based on invalidation, not the ratio you want to display.
- 02TEST
Check whether the target fits structure, volatility and holding period.
- 03PRICE COSTS
Account for spread, commission, swaps and possible slippage.
- 04SIZE
Calculate the position from account risk and actual stop distance.
- 05REVIEW
Compare planned R with realized R in your trading journal.
FAQ
Questions about risk and reward.
How is the risk-to-reward ratio calculated?
Divide the distance from entry to take profit by the distance from entry to stop loss. A reward distance of 100 points and a risk distance of 50 points produces a 1:2 risk-to-reward ratio.
What does a 1:2 risk-to-reward ratio mean?
It means the planned reward is twice the planned risk. If 1R equals 100 account units, the planned loss is 100 units and the planned profit is 200 units before trading costs and execution differences.
What is the break-even win rate for a 1:2 ratio?
The theoretical break-even win rate is 33.33% before fees, spread, slippage and other costs. Real trading requires a higher realized rate or reward to cover those costs.
Does a high risk-to-reward ratio make a trade good?
No. The target must still be plausible, the setup must have evidence and the stop must reflect the trade idea. Moving a target farther away only improves the displayed ratio, not the probability of reaching it.
How does risk-to-reward affect position size?
The ratio does not set position size. Position size depends on the amount you are willing to risk and the entry-to-stop distance, adjusted for the instrument's tick or pip value.
Can I use this calculator for long and short trades?
Yes. For a long trade, the stop must be below entry and the target above it. For a short trade, the stop must be above entry and the target below it.
Are spread and slippage included?
No. The calculator uses the price levels and optional account risk you enter. Include realistic execution costs in your own planning and review realized results separately.
FROM CALCULATION TO EXECUTION
Define the risk.
Build the trade around it.
Use the free calculator for a quick check, then bring entry, stop, target and position sizing together in CONNECT.
Explore CONNECT