How to read the results
Choose an example or your own instrument. Change entry, stop and target, then read the three answers above.
- 01Set an entry, a stop that limits the planned loss, and a target on the profitable side.
- 02Enter the total round-trip costs as a percentage of entry price, including spread and both sides’ fees.
- 03Compare gain at the target with loss at the stop after costs. A ratio of 1:2 means two units of net gain for each unit of net loss.
Worked example
Buy BTC at 60,000, stop at 57,000, target at 66,000, round-trip costs 0.1% (= 60 price units). Net gain is 5,940; net loss is 3,060; the ratio is 1:1.94 and the break-even win rate is 34.0%. A sale at 60,060 just covers the assumed costs.
Calculation
Cost in price units = entry × cost% ÷ 100. Net gain = distance to target − cost. Net loss = distance to stop + cost. Break-even win rate = net loss ÷ (net gain + net loss).
What the calculation leaves out
Prices can gap past a stop, spreads and fees can change, and slippage, funding, swaps and taxes are not modelled unless you add an estimate to the cost input. Results are per unit of the quoted asset, not an account-currency profit or a position-size recommendation.
Risk note
Trading involves substantial risk. Educational content is not financial advice.