risk-reward-ratio
Calculate and evaluate risk-reward ratios for NSE/BSE equity trades. Includes R:R calculation, minimum R:R tables by win rate, trade filtering rules, and multi-target R:R analysis. Use when the user asks: "risk reward for this trade", "is this trade worth it", "R:R ratio", "what's my risk vs reward", "should I take this trade", "expected value of trade", or any question about whether a trade setup justifies the risk.
适合你，如果你在印度股市做交易，需要量化每笔交易的风险与回报
用别的 agent?下载 .zip 解压,把文件夹放进它的技能目录
~/.claude/skills/(项目级 .claude/skills/)~/.codex/skills/npx oh-my-skill add bhala-srinivash/nse-trading-skills/risk-reward-ratiocurl -fsSL https://oh-my-skill.com/install.sh | bash -s -- bhala-srinivash/nse-trading-skills/risk-reward-rationpx oh-my-skill verify bhala-srinivash/nse-trading-skills/risk-reward-ratio怎么用
技能原文 SKILL.md
Risk-Reward Ratio
If the math doesn't work, don't take the trade. R:R is the simplest filter that separates good setups from bad ones.
Prerequisites
No dependencies required. Pure math — provide entry, stop, and target prices. No data tools needed.
Calculation
Risk = Entry price - Stop-loss price Reward = Target price - Entry price R:R = Reward ÷ Risk Example: Entry: Rs.1,800 Stop: Rs.1,700 → Risk = Rs.100 per share Target: Rs.2,100 → Reward = Rs.300 per share R:R = 300 ÷ 100 = 3:1
In rupee terms:
Total risk = Risk per share × Number of shares Total reward = Reward per share × Number of shares
Minimum R:R by Win Rate
Your win rate determines the minimum R:R needed to be profitable over time.
| Win Rate | Min R:R (Breakeven) | Recommended Min | Trades Needed to Recover 1 Loss | |----------|--------------------|-----------------|---------------------------------| | 30% | 2.33:1 | 3:1 | ~3 winners | | 40% | 1.50:1 | 2:1 | ~2 winners | | 50% | 1.00:1 | 1.5:1 | 1 winner | | 60% | 0.67:1 | 1:1 | <1 winner | | 70% | 0.43:1 | 0.75:1 | <1 winner |
If you don't know your win rate, assume 40-50% and require at least 2:1 R:R.
Trade Filtering Rules
| R:R Ratio | Decision | |-----------|----------| | Below 1:1 | Skip — you're risking more than you can gain | | 1:1 to 1.5:1 | Only if win rate > 55% AND high-conviction setup | | 1.5:1 to 2:1 | Acceptable for experienced traders with edge | | 2:1 to 3:1 | Good — standard for swing trades | | 3:1+ | Excellent — take these trades consistently |
Multi-Target R:R
For trades with multiple profit targets (scaling out):
Target 1 (50% of position): Rs.1,900 → R:R = 1:1 Target 2 (30% of position): Rs.2,000 → R:R = 2:1 Target 3 (20% of position): Rs.2,200 → R:R = 4:1 Weighted R:R = (0.5 × 1) + (0.3 × 2) + (0.2 × 4) = 1.9:1
This is useful when you plan to scale out at different levels.
Expected Value
For a more complete picture, calculate expected value per trade:
EV = (Win rate × Average win) - (Loss rate × Average loss) Example: Win rate: 50%, Avg win: Rs.10,000, Avg loss: Rs.5,000 EV = (0.5 × 10,000) - (0.5 × 5,000) = Rs.2,500 per trade Positive EV = edge. Negative EV = change your approach.
R:R Checklist
Before entering any trade:
- [ ] Have I identified a specific target (not just "it'll go up")?
- [ ] Is the stop-loss at a technically meaningful level?
- [ ] Is R:R at least 1.5:1 (ideally 2:1+)?
- [ ] Does the position size keep risk within 1-2% of capital?
- [ ] If this trade hits stop, will I still be fine psychologically and financially?