Calculate risk-to-reward ratios optimized for scalping strategies with tight stops and quick profit targets on 1-minute to 15-minute timeframes.
Scalping requires a different approach to risk management than swing trading. The mathematics change significantly at small timeframes and tight stops.
Scalping R:R vs. Win Rate Trade-off
Higher win rates allow lower R:R — but achieving 70% win rates consistently is extremely difficult.
The Fee Problem for Scalpers
A 0.1% round-trip fee on a scalp targeting 0.3% profit means you need to be right 33% of the time just to cover fees before making profit. This is why most scalpers: 1. Use maker (limit) orders exclusively 2. Trade on exchanges with rebates 3. Target at least 0.3–0.5% per trade to overcome fees
Volume and Consistency
A good scalper makes 10–20 small, consistent profits per day rather than chasing large moves. The compounding effect of many small wins outperforms a few large winners over time.
Risk Management
The system of rules and practices a trader uses to protect capital — encompassing position sizing, stop-loss placement, drawdown limits, and maximum daily loss rules.
Drawdown
The percentage decline from a peak equity value to a subsequent trough — measures how much your account has lost from its highest point.
Risk Per Trade
The maximum percentage or dollar amount of your account you are willing to lose on a single trade — the foundation of sound position sizing.
Expected Value (EV)
The average outcome of a strategy over many repetitions — positive EV means profitable long-term, negative EV means losing long-term.
Scalpers often accept lower R:R ratios (1:1.5 to 1:2) compared to swing traders, compensated by higher win rates (60–70%+). At 1:1.5 R:R with a 60% win rate, you have a profitable edge.
Fees are critical for scalpers. At 0.05% taker fee on both sides (0.1% round-trip), you need a 0.1% price move just to break even. At $50,000 BTC, that's $50 per BTC position. Use limit orders (maker fees) wherever possible.
Swing Trading R:R
Calculate risk-to-reward ratios for swing trades with wider stops and multi-day profit targets. Optimized for 4H to daily timeframe traders.
Risk:Reward
Calculate your risk-to-reward ratio, potential profit/loss, and breakeven win rate for any crypto trade.
Fee Calculator
Calculate exact trading fees for crypto futures and spot trades. See how fees affect your net P&L across different exchanges and fee tiers.