Crypto Risk/Reward Ratio Calculator

Check whether a trade is worth taking before you place it. Enter your entry, stop loss and take-profit to see how much you risk, how much you could gain, and the win rate you need to break even. Long or short, free.

Calculator

Risk/reward ratio
1 : 2.40
Breakeven win rate
29.4%
Risk per coin
5.00 (5.00%)
Reward per coin
12.00 (12.00%)

Long trade. Fees and slippage are not included. Size this trade

How it is calculated

  • Risk = distance from entry to stop loss.
  • Reward = distance from entry to take-profit.
  • Risk/reward ratio = reward ÷ risk, shown as 1 : X.
  • Breakeven win rate = risk ÷ (risk + reward).

Example

Buy at 100, stop loss at 95, take-profit at 112. You risk 5 to make 12, a ratio of 1 : 2.4. You would need to win about 29% of trades like this to break even before fees.

Every ALPHAVYN signal already comes with an entry, a stop loss and two take-profit targets, so you can check its risk/reward straight away.

Related guide: Risk/reward ratio in crypto

Common risk/reward mistakes

  • Unrealistic targets. A 1:5 ratio means nothing if price rarely travels that far. Base targets on real levels, not on the ratio you want.
  • Ignoring the breakeven win rate. Every ratio needs a minimum share of winning trades. Check it before judging a setup.
  • Moving the stop to improve the ratio. A tighter stop looks better on paper but gets hit more often. Place the stop where the idea is wrong first.
  • Leaving out fees. Fees reduce every reward and add to every loss, especially on small moves.

Questions

What is a good risk/reward ratio?

There is no single right number. A higher ratio means each win pays more than each loss costs, so you can be right less often and still break even. It only helps if the target is realistic for the market you trade.

What is the breakeven win rate?

It is the share of trades you must win, at this ratio, to neither make nor lose money before fees: risk ÷ (risk + reward). At 1:2 it is about 33%; at 1:1 it is 50%.

Does this work for short trades?

Yes. If your stop loss is above your entry, the calculator treats the trade as a short and measures the target below the entry.

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Every formula is shown on its page with a worked example. Spotted something that looks wrong? Email [email protected]. We appreciate it. How our tools work

For information and education only, not financial advice. Crypto trading carries a high risk of loss. Risk Disclosure