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Risk Reward Ratio Indicator

The success or failure of forex trading mostly depends on money management. As everyone knows, whenever trade is opening there is a risk of losing money. That is why it is so important to control risk.


Using risk/reward ratio in trading

Using the Risk Reward Ratio for the MetaTrader platform, you will be able to estimate the risk of each transaction opened on the forex market. Thanks to this forex tool, you can check the risk to reward ratio of each planned trade and exactly check the size of your potential profit and possible loss in the account currency.

Let's consider example:

For 10 transactions, there are 5 profitable transactions and 5 losing transactions (50% of efficiency).

If Risk Reward Ratio = 2, in these 10 transactions, the loss will be $250 ($50 per trade) and the profit will be $500 ($100 per trade), so the account will increase by $250.


Forex Lot Size Calculator

You can also use this indicator as a forex lot size calculator. In the indicator's parameters, set the maximum percentage of capital that you can lose on a single transaction. Then, move stop loss line on the chart to set trade exit level on the loss and indicator will automatically calculate the lot size. Thanks to this indicator you will never have to manually calculate lot size saving a lot of time. Using the Risk Reward Ratio Indicator, you will be aware of risks of forex trading and placing orders will be quick and easy.


How to use Risk Reward Ratio Indicator


Step 1: Draw lines

  • click the draw button (with pencil) and then click on the chart where you want to place the „Open” line.

Step 2: Move lines

  • double click on lines and move them to specified levels where you planned to open order and set stop loss and take profit.

Step 3: Adjust lot size

  • set lot size in panel and read what is your stop loss and take profit value in account currency
  • if FixedRisk = true, then the indicator will calculate the lot size automatically depending on the selected risk (the AllowedRiskPercent parameter) and stop loss distance.

Step 4: Place order

  • run RRR_SendPendingOrder or RRR_SendOrder script to place/open order (all scripts are available to download in "Comments" tab).

Step 5: Clear lines

  • click button clear (with rubber) to remove lines from chart.


Indicator’s parameters

  • AllowedRiskPercent – acceptable risk of single transaction according to account balance (allowed values from 0.1 to 100).
  • FixedRisk – turn on/off autoadjusting lot size to risk percent set in the “AllowedRiskPercent” parameter.
  • AcceptableRiskColor – font color of risk%, if it is smaller or equal than acceptable risk (set by the AllowedRiskPercent parameter).
  • UnacceptableRiskColor – font color of risk%, if it is greater than acceptable risk (set by the AllowedRiskPercent parameter).
  • Prefix & Suffix - sometimes indicator must read price of other symbol to properly calculate current pair or CFD profit and loss in currency. In some cases, pairs have additional prefix and/or suffix, e.g. “EURUSD.Pro”. In this case, you should write “. Pro” into suffix field.
  • LineStyle – select line style from list (solid, dash, dot, etc.).
  • LineColor – line color.
  • TextColor – label text color.
  • HorizontalAlign – panel can be horizontally aligned to left/right border or center.
  • YDistance – distance in pixels from top.
  • PanelFontColor – panel text color.
  • CFDCurrency – symbol of quotation currency for CFD symbols needed for proper computations of profit and loss in currency.


Stanley Nliam
23
Stanley Nliam 2018.06.27 00:14 
 

Amazing indicator. super superb!!!

Vdubus Channel
31
Vdubus Channel 2018.05.21 18:33 
 

Awesome. Perfect tool to work out risk/reward. Note. If you have a p for pro next to your currency pair ( EURUSDp ) Go to setting and put a ' p ' in the Suffix box

Daniel
426
Daniel 2018.03.23 09:29 
 

Nice Job lets see.

Xunxun Liu
307
Xunxun Liu 2017.10.30 14:36 
 

Wonderful tool! It's very useful for the followers of price-action strategy, and save our time. supporting is timely and helpful.

Totoma
90
Totoma 2017.08.20 21:32 
 

Yes, thats it! Works great. Never calculate the size again. Thanks!!!

realdough
19
realdough 2017.08.07 12:24   

I am trying to activate this tool in my metatrader4 with no success. Please help.

lexx1980
29
lexx1980 2017.04.18 11:35 
 

Great tool! Simple, easy to use yet very helpful.

Support responds to queries.

Would recommend.

khaled75
207
khaled75 2016.08.19 10:38 
 

I have been using this tool for the last couple of weeks and I had to leave a review. It does exactly what it says on the tin and is an extremely useful tool for quickly calculating your positions based on your risk. In addition to it being a great tool, the support is also excellent based on the one time I needed to contact the developer. Thumbs up from me!

kanibus
243
kanibus 2016.03.16 18:10 
 

Exelent stuff! I always kept losing my money due to bad MM. I am not really good to calculate RRR. This tool is fantastic, does the job for me. Manual beautifully explained. Worth the money.

fxice
19
fxice 2015.06.18 12:03 
 

An extremely useful tool for quickly calculating risk reward ratios and the appropriate lot size risked as a percentage of your account. Before I was manually trying to calculate the lot size to keep my trades at 1.5% of my account. Now this calculates it for me instantly. Highly recommended!

Version 4.0 - 2018.04.10
- new feature to set fixed stop loss and take profit levels
- slimmed panel
- possibility to hide or show panel
Version 3.2 - 2015.08.28
Adjusted pip value computation for some brokers.
Version 3.1 - 2015.06.17
- auto adjust indicator's lines to current price on every tick
- automatic lots calculation based on fixed risk % and stop loss distance
Version 3.0 - 2015.02.16
- possibility of placing Risk Reward Ratio lines on existing order with StopLoss and TakeProfit (auto adjust)
- possiblity of changing the indicator's panel location
Version 2.0 - 2014.10.20
- Estimate stop and target distance in account currency.
- Calculate a percentage of account risk.