Risk to Reward Formula-Finding Reward

cc4digital2

New Member
Joined
Jul 9, 2020
Messages
6
Office Version
  1. 2019
Platform
  1. Windows
Good evening. My brain and algebra have failed me. I know this is simple, but for some reason, I can not get it to work.

So the risk to reward calculation is--
(Expected Target-Entry)/(Entry-Expected Loss)=Ratio
eg. Expected Target=X Expected Loss=100 Entry=100 Ratio = 2
X=130

I am trying to produce a formula that will find X when I give Expected Loss, Entry, and Ratio

Appreciate the help on this one. I know I am missing something simple here.
 

Excel Facts

Which lookup functions find a value equal or greater than the lookup value?
MATCH uses -1 to find larger value (lookup table must be sorted ZA). XLOOKUP uses 1 to find values greater and does not need to be sorted.
Here the formula in algebra:

(T - E)
--------- = R
(E - R)

Need to solve for T
 
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sorry about the above it is not right. I have two R's I tried to delete the post but do not see a way to do that. So here it is again

(T - E)
------- = M
(E - R)
 
Upvote 0
Thanks, Sandy, I just got it, too. It has been a long time since I have worked with algebra. I had forgotten about cross multiplying.o_O

Thanks again. Have a nice night
 
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