KT Risk Reward MT4
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KT Risk Reward shows the risk-reward ratio by comparing the distance between the stop-loss/take-profit level to the entry-level. The risk-reward ratio, also known as the R/R ratio, is a measure that compares the potential trade profit with loss and depicts as a ratio.
It assesses the reward (take-profit) of a trade by comparing the risk (stop loss) involved in it. The relationship between the risk-reward values yields another value that determines if it is worth taking a trade or not.
Features
- A very convenient tool to quickly know the risk-reward ratio in advance before opening a trading position.
- It allows the quick identification of entry-level by syncing it with the current price.
- Entirely customizable, i.e., you can change the font size, colors, and chart corner to display the risk-reward ratio.
Formula Used
Risk-Reward Ratio = (Entry price ~ Stop-loss price) / (Take-profit ~ Entry price)
The sign ‘~’ represents the difference between two values, where we always subtract the higher value with the lower one.
The sign ‘~’ represents the difference between two values, where we always subtract the higher value with the lower one.
How to use KT Risk Reward Tool
When applied on the chart, it will plot entry, stop loss and take profit lines. You need to match these lines to the actual trading position levels to get the risk-reward ratio.
