The main feature of Risk Reward Ratio Indicator is to allow the user conscious investing. Each transaction bears certain risk. Risk Reward Ratio Indicator analyses the risk thoroughly, before position is opened. Therefore, it is much easier to make investment decisions. Risk Reward Ratio Indicator is compatible with MetaTrader 4 and MetaTrader 5 platforms. Risk Reward Ratio tool is a professional algorithm, that calculates risk of every transaction before it is finalized. It allows you to precisely estimate gain and possible loss. The professional system is able to estimate levels of Take Profit and Stop Loss incredibly precisely, making investments more effective and safer. Easy investing, quick risk and gain calculations are only a few features of our tool. Extended functionality of Risk Reward Ratio indicator includes: - following the price - moving lines on the chart - setting constant TP - SL levels - removing all lines with one click - closing one or all positions with one click - adding and removing lines indicating TP/SL levels - numerous other interesting and very useful features In the attachment is version for MT4 active for 7 days. The file ex4 should be added to the Experts and activated AutoTrading in MT4. If you need version for MT5 please contact with us. I cannot add here ex5, because forum not support this files. How to run Risk Reward Ratio?
Risk Reward ratio measures how much your potential reward risk is,for every penny you risk. For example : if you are have a risk reward ratio of 1:4 then it means you are risking $1 to make $4.Risk Reward is used by the traders to manage their capital and risk of loss during the trade and it assesses the expected return and risk of a trade. Calculation of risk reward ratio is easy, you just need to simply divide the net profit(the reward)by the price of your maximum risk.
A risk reward ratio measures the expected profits and risks from undertaking a particular investment/trade. It is a great measure of managing the risk and capital effectively. A risk return ratio of 1:5 implies that you are risking 1 $ to make 5 $ . Although there is no optimal ratio that can be called to be perfect . The ideal ratio will vary from person to person and on his priorities.
Sorry I disagree, R:R does not measure expected profits, it is not very meaning unless the expected outcome is positive. High Reward to Risk usually means low probability because the market is usually very efficient. I would paid more attention to the positive expectancy of my strategy.