Calculate your risk to reward ratio, breakeven win rate and expected value for any gold trade. Know whether a trade is worth taking before you enter.
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The risk to reward ratio (R:R) is one of the most fundamental concepts in professional trading. It compares the amount you are risking on a trade — from your entry to your stop loss — versus the amount you aim to make — from your entry to your take profit.
A trade with a 1:2 risk to reward ratio means that for every £1 you risk, you are targeting £2 in profit. This single concept, applied consistently, is what allows traders to be profitable even when they lose more trades than they win.
| R:R Ratio | Breakeven Win Rate | Required Edge |
|---|---|---|
| 1:1 | 50% | Minimal edge required |
| 1:1.5 | 40% | Lose 6 in 10 and still profit |
| 1:2 | 33.3% | Lose 2 in 3 and still profit |
| 1:3 | 25% | Lose 3 in 4 and still profit |
Expected value tells you the average profit or loss per trade over a large sample size. A positive EV strategy is profitable long-term.
EV = (Win Rate × Reward) — (Loss Rate × Risk)
Example: 55% win rate at 1:2 R:R = (0.55 × 2) — (0.45 × 1) = 0.65R per tradeEvery trade idea sent through our VIP channel is evaluated for R:R before it is sent. We target a minimum of 1:2 on every trade — often higher. This means even if our members only win half their trades, they are consistently profitable over time.
You never have to assess trade quality alone. Every Gold Trade Signals idea includes the full R:R breakdown so you always know what you are getting into. Join free.
Join Free on WhatsAppGold Trade Signals provides educational tools and market analysis for informational purposes only. This calculator is for educational use only and does not constitute financial advice. Trading leveraged products including gold (XAU/USD) carries a high level of risk. You may lose some or all of your invested capital. Past performance is not indicative of future results. Please trade responsibly.
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