Risk/Reward & Expectancy
Calculate trading expectancy and risk-reward ratios for your strategy
Trading Parameters
Enter your trading statistics to analyze profitability
Analysis Results
Your trading strategy profitability analysis
Enter your trading parameters and click Calculate to see results
Understanding Expectancy
Formulas
Risk:Reward Ratio = Average Win ÷ Average Loss
Expectancy = (Win Rate × Avg Win) − (Loss Rate × Avg Loss)
Breakeven Win Rate = Avg Loss ÷ (Avg Win + Avg Loss)
Monthly Expectancy = Expectancy × Trades per Month
Key Insights
- • Positive expectancy = profitable strategy
- • Higher R:R ratios require lower win rates
- • Focus on expectancy, not just win rate
- • Track actual performance vs. expected
- • Consider transaction costs in real trading
Educational Use Only: This tool is for education and not financial advice. Past performance does not guarantee future results.