Annualized Returns & Reward-to-Risk Ratio (RRR) Calculator for Your Trading System

I have created this Google Sheet to calculate the minimum required Reward-to-Risk Ratio (RRR) for different win rate levels in order to achieve a certain desirable annualized return from your trading system. You’ll need to enter a few characteristics of your trading system, such as Desired Annual Returns and Average Stop Loss per Trade. I specifically derived this formula for Swing or Position Trading, but it might also be applicable to Intraday Trading. Alternatively, you can also use it to estimate the annualized returns of your trading system over the long term.

Disclaimer:

This product is provided for informational purposes only, not for trading purposes or advice. While efforts have been made to ensure accuracy, users utilize the information at their own risk. The creator disclaims any liability for losses incurred from decisions based on information provided in this product (Google Sheet).