HOW DO I CALCULATE THE RISK TO REWARD OF A SIGNAL?
The best way to calculate your Risk to Reward in Forex is by using pips as a measure from entry point to stop loss and take profit target. If the risk to reward ratio is 1:3, this means that for every 1 dollar you are willing to risk, you will gain 3 dollars in reward.
Risk-reward ratio = Absolute value (Price entry value – stop loss value) divided by Absolute value (Price entry value – Target price value)