FCPO Risk/Reward Calculator

Calculate risk to reward ratio before entering trades

Trade Levels

Professional Standard: Aim for minimum 2:1 reward-to-risk ratio. This means your potential profit should be at least twice your potential loss.

Risk/Reward Analysis

Risk/Reward Ratio
1:2.00
Excellent Trade Setup
Risk (Distance to Stop)30.00 points
Per ContractRM 750.00
Reward (Distance to Target)60.00 points
Per ContractRM 1500.00
Trade Levels
Entry:RM 3950
Stop Loss:RM 3920
Take Profit:RM 4010
Trade Quality: Excellent
This trade meets professional standards with 2.00:1 R:R ratio. Your potential reward is 2.00x your risk.

Why Risk/Reward Ratio Matters

🎯 The 2:1 Rule

Professional traders aim for minimum 2:1 reward-to-risk ratio. This means even with 50% win rate, you're still profitable. Win 2 trades (2x reward) and lose 2 trades (2x risk) = net positive.

📊 Win Rate vs R:R

With 2:1 R:R, you only need 40% win rate to break even. With 3:1 R:R, you only need 33% win rate. Better risk/reward ratios reduce pressure to be right all the time.

⚠️ Poor Ratios

A 1:1 ratio means you need 50%+ win rate just to break even. Ratios below 1:1 (risking more than you can gain) are considered poor trades that should usually be avoided.

💡 Improving Your Ratio

  • • Wait for better entry prices
  • • Use tighter stop losses at key levels
  • • Target realistic profit zones
  • • Skip trades with poor ratios

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