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STRATEGY SIMULATOR

Win Rate vs Risk–Reward Simulator

Simulate your strategy's expected profitability across different win rates and R:R ratios. See the full profitability matrix and know if your strategy has a positive edge.

Simulate your strategy's expected profitability across different win rates and R:R ratios. See the full profitability matrix and know if your strategy has a positive edge.

  • Get an instant result with the exact inputs that matter for this metric.
  • Compare scenarios quickly (best case vs worst case) before taking action.
  • Understand what the output means and how traders/investors use it in practice.
  • Use it for planning and education — no login required.

Strategy Parameters

DETAILS

About this Win Rate Simulator

This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.

What this tool does

Purpose

This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.

Use it to compare scenarios quickly and to understand the trade-offs behind the final result.

When it is helpful

  • To sanity-check assumptions before committing money.
  • To compare two or more scenarios side-by-side (conservative vs aggressive).
  • To convert a “feel” into a number you can plan around.
  • To learn what the metric means and how it is used in practice.

How to read the result

Interpretation

Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.

If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.

Common mistakes to avoid

  • Using overly optimistic return assumptions.
  • Ignoring fees/taxes where they matter.
  • Optimizing precision instead of making a better decision.
  • Treating the result as a prediction instead of a plan.

Example calculations and results

Example 1 (50% WR, 1:2 R:R)

Capital ₹5,00,000, Risk 1%, Win rate 50%, R:R 1:2, Trades 100

Risk per trade₹5,000
Reward per win₹10,000
Expectancy0.500R (₹2,500/trade)
Expected profit₹2.50 L
Final capital₹7.50 L

Graphical view

Profit
₹2.50 L
Final
₹7.50 L

Example 2 (lower WR, higher R:R)

Capital ₹3,00,000, Risk 0.5%, Win rate 40%, R:R 1:3, Trades 200

Risk per trade₹1,500
Reward per win₹4,500
Expectancy0.600R (₹900/trade)
Expected profit₹1.80 L
Final capital₹4.80 L

Graphical view

Profit
₹1.80 L
Final
₹4.80 L

HOW IT WORKS

Simple steps to get your result

1

Enter your strategy parameters

Input capital, risk per trade %, your current win rate, and average R:R ratio.

2

Set number of trades to simulate

Choose how many trades to simulate — 100 is a good statistical sample for evaluating a strategy.

3

Read the profitability matrix

See expected profit for your exact parameters, plus a full matrix showing all win rate × R:R combinations — green = profitable, red = losing.

FAQ

Frequently asked questions

What is trading expectancy?+

Expectancy = (Win Rate × Average Win) − (Loss Rate × Average Loss), expressed in R multiples. A positive expectancy means your strategy makes money over many trades on average. Example: 50% win rate with 1:2 R:R has expectancy of (0.5 × 2) − (0.5 × 1) = +0.5R per trade.

Can a strategy with 40% win rate be profitable?+

Yes — absolutely. At 40% win rate with 1:2 R:R, expectancy = (0.4 × 2) − (0.6 × 1) = +0.2R per trade. After 100 trades, expected profit = 20R. The key insight: a higher R:R ratio allows profitability with lower win rates.

What win rate is realistic for intraday traders?+

40-55% win rate is common for disciplined intraday traders. Less than 40% with R:R below 2:1 is a losing strategy in the long run. Greater than 65% win rate is uncommon — most traders claiming this are either cherry-picking data or have very tight targets with wider stops (which actually reflects a poor R:R).

How many trades does it take to know if a strategy works?+

Statistically, you need at least 30-50 trades to draw any conclusions, and 100+ trades to have reasonable confidence. With fewer trades, variance dominates. A 55% win rate strategy can easily show 40% or 70% win rates in a sample of 20 trades — these are not meaningful signals.

Track your real win rate and R:R

TradeLyser calculates your actual win rate, average R:R, and expectancy from real trades — so you know if your strategy has a real edge.