Formula
The formula is displayed so the result can be checked independently. PreBreakout does not use a hidden scoring model on this page.
Worked hypothetical example
For a hypothetical long setup with entry 100, stop 95 and target 110, risk is 5, reward is 10 and reward-to-risk is 2.00.
Important: the numbers are fictional and are not associated with a security, issuer or current market price.
What this calculator does not tell you
- For a long model, the stop must be below entry and the target above entry.
- For a short model, the stop must be above entry and the target below entry.
- A ratio describes geometry only. It does not estimate the probability of success.
Market execution can differ from arithmetic inputs because of spreads, gaps, slippage, order types, broker constraints and other factors. This tool does not attempt to model those effects unless an input explicitly asks for a value.
How to use it for learning
Change one input at a time and observe how the result changes. This is especially useful for understanding sensitivity: wider stop distance changes position-size arithmetic, a taller pattern changes a measured-move result, and a larger reward-to-risk ratio changes the theoretical break-even win rate. The exercise is about the formula, not about identifying a trade.