Trade asymmetric.
Entry, stop, target → R:R ratio and the win rate you need to break even.
INPUTS
$
$
Where you cut the loss.
$
Where you take profit.
TRY ONE
RESULT
Risk : reward1 : 3.00
DirectionLONG
Risk per share$5.00
Reward per share$15.00
Breakeven win rate25.0%
HOW IT WORKS
R:R is reward divided by risk. The breakeven win rate = 1 / (1 + R:R) — at 1:2 you only need to win 33% of the time to break even before fees; at 1:1 you need 50%. The R:R you get to use on entry is the most honest number in trading: it's set by the chart before you have any P&L to defend. Most pro setups aim for 1:2 or better and accept that a 35–45% hit rate is fine. Anything below 1:1 makes the math hostile.
FAQ
What is a "good" risk:reward ratio?
1:2 or better is the standard threshold — at 1:2, you only need a 33% hit rate to break even. Anything below 1:1 makes the long-run math hostile.
How is breakeven win rate calculated?
breakeven = 1 / (1 + R:R). At 1:1 you need 50%, at 1:2 you need 33.3%, at 1:3 you need 25%.
Should I avoid trades with poor R:R?
High win-rate, low R:R systems exist (mean reversion, scalping). They just require huge sample sizes to validate. Most discretionary traders are better off chasing R:R than win rate.
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