This **forex reward to risk calculator** allows you to calculate the reward/risk parameters of a forex trading setup/forex signal that you wish to trade. It will help you **quickly assess any trade opportunity** that your forex trading system generates or any trading recommendation/forex signal that you receive from your forex signals/strategies provider.

It is best to trade forex setups with the highest reward/risk ratio. The **minimum acceptable reward/risk ratio should be greater than 2.0**. We implemented the marking system which **separates mediocre setups from acceptable and outstanding opportunities** by marking the reward/risk ratios with “!” signs based on the attractiveness of the trading opportunities. The marking is performed as follows:

- Trading setups with Reward/Risk ratio less than 2 – are ignored
- Trading setups with Reward/Risk ratio greater than 2 – are marked with
**!** - Trading setups with Reward/Risk ratio greater than 4 – are marked with
**!!** - Trading setups with Reward/Risk ratio greater than 6 – are marked with
**!!!**

You can change all the cells that are coloured in red.

The calculator is made up of three parts which are described in detail below:

## 1. Single Exit Reward/Risk Calculator

This calculator calculates the attractiveness of the buy and sell setups which contain only one entry and exit point. This calculator can be used for **quick assessment of any trading opportunity** that you encounter. Please note that you should **never trade incomplete forex trading setups**/signals or recommendations where either Take-Profit or Stop-Loss is missing. The Reward/Risk field might show the following message – “**Please Correct**” which means that one of the price levels that you have entered either violates the vertical alignment or is missing.

## 2. Multiple Exit Reward/Risk Calculator

This calculator lets you to **evaluate multiple stop-loss/take-profit scenarios** for a single buy or sell entry point. Both Buy and Sell sections contain the slots for the maximum of 3 Take-Profit (denoted as “TP”) and 3 Stop-Loss (denoted as “SL”) levels which can be cross-compared to identify the reward/risk ratio for the **maximum of 9 possible combinations** (which are presented in the respective tables of the **Reward/Risk Matrix**). You can **calculate the attractiveness of any number** of Take-Profit and Stop-Loss levels – meaning you are not required to fill all of the 6 slots to populate the Reward/Risk Matrix (as long as you have entered at least one Take-Profit or Stop-Loss level – along with the Entry Price).

The Take-Profit and Stop-Loss levels are numbered in **ascending order** starting with the closest ones to the Entry Price.

The

Statusfields can show either:

“OK”- In this case the Reward/Risk Matrix is populated.

“Please Correct” – This means that one of the price levels that you have entered either violates the vertical alignment or is missing. Reward/Risk Matrix will not be populated until you correct your entry.

The **Reward/Risk Matrix** shows the Reward/Risk parameters for all possible combinations of Take-Profit and Stop-Loss levels that you have entered. The upper-left cell displays the entry price which is used to populate this table.

## 3. Partial Exit Reward/Risk Calculator

This calculator allows you to calculate the **cumulative reward/risk ratio** – when you **perform partial exit** from a Buy or a Sell position at up to 5 consecutive Take-Profit levels. This calculator is helpful in seeing what your **final return** will be if you closed **certain percentages** of your initial position at different price levels (it is worth mentioning that the micro-lot trading accounts are best suited for partial exit strategy). You can set any percentage (in the **% Profit Taken** column) next to each of the Take-Profit levels – as long as their **TOTAL is equal to 100%. ****Partial RERI** column calculates the individual reward/risk ratios for each of the Take-Profit levels. The **Cumulative R/R** sums the values in the **Partial RERI** column. ** **

The

Statusfields can show either:

“OK”- In this case the Cumulative R/R will be calculated.

“Please Correct” – This can mean one of the following: percentage TOTAL is not equal to 100%, one of the price levels that you have entered violates the vertical alignment or is missing.