Expectancy Calculator
Risk-to-Reward & Expectancy Calculator
Understand strategy math. Learn how a low win rate strategy can be highly profitable with high risk-to-reward ratios.
01. The Math of Risk-to-Reward (R:R)
R:R compares the entry risk against target profit. A 1:2 R:R means you risk $100 to make $200. With a 1:2 R:R, you only need a 34% win rate to break even.
02. Calculating Strategy Expectancy Score
Expectancy measures the average profit generated per trade. A positive expectancy score proves you have a statistical edge.
03. Optimizing R:R in Backtesting
Use historical replays to test if expanding target lines to 1:3 R:R improves net returns despite dropping win rates.