Trading Blueprint, Tailored for You
Not all setups are created equal. Calculate your precise risk-to-reward ratio to ensure every trade has a bulletproof mathematical edge.
Trade Blueprint
Verify if your trade plan has a strong mathematical edge.
1 : 2.50
Note: Pro traders recommend setups with at least 1:2 R:R. Guard your capital and avoid overtrading.
What is Risk:Reward Ratio?
The Risk:Reward (R:R) ratio is a simple comparison between how much money you might lose versus how much you might win on a trade. For example, if you risk ₹1,000 to potentially win ₹2,000, your ratio is 1:2.
This is the secret to making money in trading. You don't need to be right every time. If your wins are much larger than your losses, you can be wrong half the time and still make a great profit.
Why 1:2 is the Golden Standard
Let's look at a mathematical example of taking 10 trades with a 1:2 R:R ratio and only a 40% win rate:
The Math of Profitability
- Risk per trade: ₹1,000
- Reward per trade: ₹2,000
- Total Trades: 10
- Losing Trades (60%): 6 trades = -₹6,000
- Winning Trades (40%): 4 trades = +₹8,000
Net Profit = +₹2,000
Despite losing more often than winning, you still walked away profitable. That is the power of a strong risk-to-reward ratio.
Common Mistakes to Avoid
1. Risking more than you can win
Never take a trade where your Stop Loss is 50 points away but your target is only 10 points. That's a "bad deal" mathematically and will lose you money over time.
2. Moving your Stop Loss
If you move your Stop Loss further down just to "stay in the trade," you've destroyed your ratio. Your small loss has now become a huge loss.
3. Taking profits too early
If you exit a trade the moment you see a small profit, your wins won't be large enough to cover your inevitable losses. Stick to your target.
Most traders fail not because of strategy,
but execution.
Don't calculate this manually every time. Automate your sizing, risk, and journal with Prepared Plan My Trade.
Build Better Trading Habits
Join thousands of Indian retail traders who use Prepared to plan their stock setups with total clarity.