Risk/Reward Calculator
Risk/Reward Calculator
Evaluate whether a trade setup is worth taking by calculating the risk-to-reward ratio and the minimum win rate required to break even over time.
Inputs
Long (Buy)
Short (Sell)
Results
Risk (SL distance)
$ —
Reward (TP distance)
$ —
Risk : Reward Ratio
—
Risk %
— %
Reward %
— %
Required Win Rate
— %
How to Use This Calculator
- Trade Direction: Select Long if you’re buying (expecting price to go up) or Short if you’re selling (expecting price to go down).
- Entry Price: The price at which you plan to open the position.
- Stop Loss: Your predetermined exit price to limit losses.
- Take Profit: Your target price to lock in gains.
The Formulas
Risk = |Entry Price − Stop Loss|
Reward = |Take Profit − Entry Price|
R:R Ratio = Reward ÷ Risk
Required Win Rate = 1 ÷ (1 + R:R Ratio) × 100%
A ratio of 1:2 or higher is generally considered favorable. At 1:2, you only need to win 33% of your trades to break even. AlgoZilla signals typically achieve risk-reward ratios between 1:2 and 1:4.
Get Trades With Built-in Risk Management
Every AlgoZilla signal comes with optimized entry, stop loss, and take profit levels — calculated by our walk-forward validated ensemble models.