Tools

Risk and reward from three prices

Risk distance is the absolute difference between entry and stop. Reward distance is the absolute difference between target and entry.

Method

The ratio is reward distance divided by risk distance. A ratio above 1 does not mean a trade has positive expectancy. Fees, funding and the chance of being stopped are outside the ratio.

Assumptions

  • Both distances are absolute. The page does not judge whether the target is in the profitable direction.
  • Nothing on this page is a forecast.

Result

Enter the values to calculate.