Risk Reward Ratio Indicator
Investment in the capital markets is risky. Some of transactions are closing with loss, so very important thing is to control risk. There are many tools for risk controlling. One of them is Risk Reward Ratio indicator.
It is used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount he or she stands to lose if the price moves in the unexpected direction (i.e. the risk) by the amount of profit the trader expects to make when the position is closed (i.e. the reward).
Using this indicator, you can check, how much your risk is relative to the profit you can get. If you always place orders in the market with Risk Reward Ratio higher than 2 then if you have min. 50% of accurate orders, your account balance will grow systematically.
- automatic lots calculation based on fixed risk % and stop loss distance
- possiblity of changing the indicator's panel location
- Calculate a percentage of account risk.