---
title: "Reward To Risk Entry Settings Explained"
description: "How to only enter trades if they meet your profit / loss ratio"
url: https://help.optionsautotrader.com/en/articles/166-reward-to-risk-entry-settings-explained
collection: "Options Auto Trader 101"
updated: 2026-09-25
language: en
---

# Reward To Risk Entry Settings Explained

How to only enter trades if they meet your profit / loss ratio

The **Reward to Risk Entry Settings** let you control when your bot enters a trade based on the potential profit compared to the potential loss. This helps you ensure your bot only takes trades that fit your preferred risk/reward profile.

## What Is Reward to Risk?

Reward to Risk is the ratio between your **potential profit** (based on your take profit level) and your **potential loss** (based on your stop loss).

-   If your **take profit** is much larger than your **stop loss**, the reward to risk is high.
    
-   If your **stop loss** is larger than your **take profit**, the reward to risk is low.
    

The Auto Trader calculates this percentage automatically every time a trade signal is triggered.

## How to Use the Settings

You can set Reward to Risk requirements in the **entry rules** (inside the Auto Trader creator flow or the bot settings popup):

-   **Minimum %**: The trade will only enter if the reward-to-risk ratio is **greater than or equal** to your chosen percentage.
    
-   **Maximum %**: The trade will only enter if the ratio is **less than or equal** to your chosen percentage.
    
-   **Both**: You can set a minimum and maximum to define an acceptable range.
    

⚠ Always enter percentages as **whole numbers**. For example, 30% = **30**.

## Example

Let’s say you want your bot to only take trades with at least a 200% reward to risk:

-   **Take Profit** = $300 potential gain
    
-   **Stop Loss** = $100 potential loss
    
-   **Reward to Risk** = $300 ÷ $100 = **300%**
    

Since 300% is greater than your minimum of 200%, the bot will allow the trade.

If another trade has:

-   **Take Profit** = $90
    
-   **Stop Loss** = $100
    
-   **Reward to Risk** = $90 ÷ $100 = **90%**
    

This trade would be blocked if your minimum is 200%.

## Why This Matters

By setting Reward to Risk Entry rules, you can:

-   Filter out low-quality trades automatically.
    
-   Ensure your strategy only takes trades that fit your comfort level.
    
-   Add an extra layer of discipline and consistency to your bots.
    

## Summary

-   Reward to Risk = potential profit ÷ potential loss.
    
-   Use entry rules to set a **minimum**, **maximum**, or both.
    
-   Enter values as **whole numbers** (e.g., 200% = 200).
    
-   Example: $300 profit / $100 loss = **300% Reward to Risk** → trade passes if min ≤ 300.