risk to reward calculation

Copper Contributor

hello! i am trying to create an excel sheet or formula that allow me to enter data and have it quickly calculate it... basically, i want to find:

 

"DOLLAR risk / (ENTER amount - RISK amount) = SHARES "

$5 / ($0.25 ENTER - $0.23 RISK) = $5 / $0.02 = 250 SHARES

so if I want to risk $5, ENTER at $0.25 and RISK $0.23, I would get 250 SHARES x $0.25 ENTER = $62.50

so I then want to be able to compute an EXIT price based off a percentage gain... like a 20% gain of $0.25 ENTER would mean I would EXIT at $0.30 ...  is that possible?

so it would cost me $62.50 with 250 shares at $0.25 and i would make $75 with 250 shares at $0.30, which is a profit of $12.50 (20% gain)

 

Any info would help if there is a way to compute this!

Thank you!!!

 

 

 

4 Replies

@volcomkiss7 Perhaps the attached file is helpful.

Screenshot 2021-05-01 at 06.47.23.png

@Riny_van_Eekelen THIS IS AWESOME! Would you be able to create one that I can easily plug in numbers with this formula: 

Shares = Dollar Risk / (Enter $ - Risk $) 

 

Thanks so much!

@volcomkiss7 Isn't that what I did in column D?

got it! thank you for this!