Break-even win rate

The win rate at which a given risk-reward ratio neither makes nor loses money, before costs.

In plain English

It equals 1 ÷ (1 + reward-to-risk). Costs push the real break-even rate higher, which matters most on small targets.

Example

At a 1:2 ratio the break-even win rate is 1 ÷ 3, about 33%. At 1:1 it is 50%.

Risk Management

See also

We count page views to see which lessons help. No ads, no profiling, no data sold. You can say no and nothing here stops working. Privacy policy