Analyze your trade setup before entering. Only take trades with favorable risk-reward ratios.
Enter Trade Details
Risk-Reward Analysis
1:3.0
Risk-Reward Ratio
Risk (per share)₹5.00
Reward (per share)₹15.00
Risk Percentage5.0%
Breakeven Win Rate25.0%
QualityGood
What is Risk-Reward Ratio?
Risk-reward ratio (R:R) compares the potential profit of a trade to its potential loss. It's expressed as risk:reward, such as 1:2, meaning you risk ₹1 to potentially make ₹2.
With a 1:2 risk-reward ratio, you only need to be right 33% of the time to break even. This gives you significant room for error while still being profitable.
📊 Breakeven Win Rates
1:1 ratio → Need 50% win rate to break even
1:2 ratio → Need 33% win rate to break even
1:3 ratio → Need 25% win rate to break even
Common Mistakes
Taking 1:1 or worse trades: Need high win rate to be profitable
A minimum of 1:2 risk reward ratio is recommended. This means for every ₹1 you risk, you should aim to make ₹2. With a 1:2 ratio, you can be profitable even with a 40% win rate.
Risk Reward Ratio = (Target Price - Entry Price) ÷ (Entry Price - Stop Loss). For a long trade with entry at ₹100, stop loss at ₹95, and target at ₹115: R:R = (115-100) ÷ (100-95) = 15 ÷ 5 = 1:3.