Success or failure from Forex trading largely depends onto money management. As you know, the opening of every trade is associated with the risk of losing money. that’s why it is so important to control the risk.
With the assistance of Risk Reward Ratio for MetaTrader, you will have the ability to assess the risk of every transaction opened on the foreign exchange market. due to the tool, you will be able to assess the risk-to-profit ratio of each proposed transaction and correctly estimate the quantity of potential profit and potential losses in the account currency.
Consider an example:
Out of 10 trades, 5 were profitable and 5 were unprofitable (50% efficiency).
If the risk-to-profit ratio is 2, in these 10 trades, the loss will be $ 250 ($50 per trade), and the profit will be$ 500 ($100 per trade), and the account will increase by$250.
This indicator can also be used as a lot size calculator. In the indicator parameters, set the maximum percentage of capital that you can lose in a single trade. Then move the stop-loss line on the chart and set the level to exit the trade at a loss, the indicator will automatically calculate the lot size. Thanks to this indicator, you will never have to manually calculate the lot size, saving a lot of time. With the help of the Risk Reward Ratio indicator, you will be aware of the risks of trading, and placing orders will be quick and easy.
Step 1: Drawing a line
- click on the draw button (with a pencil), and then click on the graph in the place where you want to place the line to open.
Step 2: Move the lines
- double-click on the lines and move them to the specified levels where you want to open an order, set a stop loss and take profit.
Step 3: Setting the lot size
- set the lot size in the panel and find out the size of the stop loss and take profit in the account currency
- if fixedrisk = true, the indicator will automatically calculate the lot size depending on the selected risk (allowedriskpercent parameter) and the stop loss distance.
Step 4: Placing an order
- run the rrr_sendpendingorder or rrr_sendorder script to install/open an order (all scripts are available for download on the “Discussion” tab).
Step 5: Clear Lines
- click the clear button (with an eraser) to remove lines from the chart.
- allowedriskpercent – acceptable risk for one trade, depending on the account balance (values from 0.1 to 100 are allowed).
- fixedrisk – enable / disable automatic lot adjustment according to the risk percentage specified in the “allowedriskpercent” parameter.
- allowedriskpercentacceptableriskcolor-font color for the risk percentage if it is less than or equal to the allowed risk (specified in the allowedriskpercent parameter).
- inacceptableriskcolor – font color for the risk percentage, if it is greater than the allowed risk (specified in the allowedriskpercent parameter).
- Prefix and Suffix-sometimes the indicator needs to read the price data of other symbols in order to correctly calculate the profit and loss for the current pair or CFD in the currency. In some cases, pairs have an additional prefix and / or suffix, for example, “EURUSD.Pro”. In this case, in the “Suffix” field, enter “. Pro”.
- linestyle-select the line style from the list (solid, dash, dot, etc.).
- linecolor – the color of the lines.
- textColor – color of the placemark text.
- horizontalalign – the horizontal position of the panel.
- ydistance – distance from the upper border in pixels.
- panelfontcolor – color of the panel text.
- cfdcurrency – the symbol of the quoted currency for CFD symbols, which is necessary for the correct calculation of profit and loss in the currency.