Risk Management

Breakeven Win Rate

The minimum win rate a given risk-reward ratio requires to avoid a net loss over time — Risk ÷ (Risk + Reward).

Breakeven win rate is the minimum percentage of trades that must be winners, given a specific risk-reward ratio, for a strategy to avoid a net loss over time: Breakeven Win Rate = Risk ÷ (Risk + Reward). A more favorable risk-reward ratio requires a lower win rate to remain profitable.

See a full worked table connecting ratios to breakeven win rates in Risk-Reward Ratio: How to Evaluate Every Trade.