Risk/Reward Calculator
Fee-free benchmark: compare stop and target distances with side-aware geometry, R-multiple, and optional expectancy.
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Results
From estimate to a live bot scenario
Carry the same logic into Veles: set comparable parameters, preview the order grid, then backtest before you launch.
- Match direction, leverage, grid, Martingale, and TP/SL
- Inspect orders, capital allocation, and average entry
- Stress-test fees, drawdown, and MAE in a backtest
Assumptions & conventions
- Long: SL < entry < TP; short: TP < entry < SL.
- Fee-free R-multiple — excludes commissions and slippage (see Stop Loss / Take Profit for net R).
- Break-even win rate = 1 / (1 + R). Expectancy in R = p×R − (1−p).
- Optional quantity converts expectancy to currency units.
Frequently asked questions
What is risk/reward ratio in trading?
Risk/reward (R-multiple) compares how much you stand to gain at take-profit versus how much you stand to lose at stop-loss from the same entry. A 1:2 plan risks 1R to make 2R.
This calculator is a fee-free geometric benchmark: it measures distances only, without commissions or slippage.
How is break-even win rate calculated?
Break-even win rate ≈ 1 / (1 + R) for a fee-free binary outcome where wins pay +R and losses cost −1R. Example: at R = 2 you need about 33.3% wins to break even before costs.
Real expectancy is lower once fees and missed targets enter the picture.
What is expectancy in R?
If you supply a win probability p, expectancy in R ≈ p×R − (1−p). Optional quantity converts that R expectancy into currency units using the risk distance.
Leave probability blank if you only need R and break-even win rate.
Why is this calculator fee-free?
Fee-free R keeps strategy math comparable across symbols and venues. For execution-level net R with commissions, use the stop-loss / take-profit calculator.
Many playbooks quote targets in clean R before layering costs.
Long vs short geometry for risk/reward
Longs need stop below entry and take-profit above. Shorts need take-profit below and stop above. Invalid ordering is rejected so ratios stay meaningful.
Always measure R from the actual entry you will use, including planned slippage if your process requires it.
Is a higher R always better?
Not automatically. Higher R targets usually win less often. The useful question is whether expectancy stays positive after your realistic win rate and costs.
Use break-even win rate as a quick filter, then validate with journaled stats — not with a single screenshot.