Live Market AI
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Risk / reward calculator

Your reward-to-risk ratio — and, more usefully, the win rate that ratio would need just to break even.

Risk (to stop)
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Reward (to target)
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Reward : risk
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Break-even win rate
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The calculator checks that your stop is on the correct side of the entry — a "stop" beyond the entry in the direction of the target is a second target, not a stop.

The number that actually matters

A ratio on its own says very little. 3:1 is not better than 1:1 — it is a different trade, with a different chance of getting there. What connects them is the break-even win rate:

reward : risk = |target − entry| ÷ |entry − stop|
break-even win rate = 1 ÷ (1 + reward:risk)

At 1:1 you need to win half your trades to finish flat. At 2:1, a third. At 3:1, a quarter. Below that, the strategy loses money at that ratio — and that is before spread, commission and slippage, which move the real break-even higher than the figure above.

The trap

The easy way to improve a ratio is to drag the target further away. That raises the number on the screen and lowers the chance of ever reaching it — the arithmetic improves while the trade gets worse.

The honest way is the other end: a closer stop that still sits behind real market structure. If the only stop that makes structural sense gives you a poor ratio, that is the setup telling you something, not a problem to calculate around.

Where do the levels come from?

Live Market AI reads trend, momentum, market structure and key levels on the market and timeframe you choose, and publishes tracked signals with entry, stop and two targets. Every published signal is followed to its result — wins and losses are both shown.

Other free tools

Position size calculatorHow much to trade so a stop costs a fixed amount. Pip value calculatorWhat one pip is worth at your position size. Compound calculatorWhat a rate compounds to over a number of periods.

Live Market AI provides market data, technical analysis and AI-assisted research. It is not financial advice and no result is a promise of profit. Trading carries risk, including the loss of your capital. livemarketai.com