Calculate your R:R ratio, breakeven win rate, and expected value per trade. Know instantly whether a setup is worth taking before you enter.
The risk/reward ratio compares how much you stand to lose on a trade versus how much you could gain. A 1:2 R:R means you risk $1 to make $2. Most professional traders require a minimum 1:2 or 1:3 before entering a trade.
For any given R:R, there's a minimum win rate required to be profitable. At 1:1, you need to win more than 50% to profit. At 1:2, you only need 33%+ wins to be net positive — giving you more room for error.
Expected value (EV) is the average dollar amount you expect to make or lose per trade. Positive EV means your strategy is mathematically sound. Negative EV means even with good execution, you'll lose money long-term.