• Overview
  • Reviews (3)
  • Comments (23)
  • What's new

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.

khaled75
166
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
162
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
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 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.