MetaTrader 4 Risk Reward Indicator Download - Free | Forex Indicator Download - MT4/MT5 Resources

The Risk Reward Indicator is one of the MetaTrader 4 indicator that calculates risk (Risk) and reward (Reward) trading levels. Calculation based on Stop Loss , Entry Price , and Take Profit levels.

The RR Indicator computes the risk-reward ratio (RRR) and displays it in the top-left corner of the chart. Additionally, it marks Stop Loss , Entry Price , and Take Profit levels using three horizontal lines on the main chart:

• Green Line: Represents the Take Profit level
• Red Line: Represents the Stop Loss level
• Blue Line: Indicates the Entry Price

Risk return indicator specifications

The table below summarizes the key features and risk-reward metrics of this technology.

Indicator Overview

The Risk-Reward Ratio (RRR) indicator helps traders compare the potential profit with the potential risk of making a trade.

• In a Long (Buy) strategy, the Risk is the difference between Entry Price and the Stop Loss , while the Reward is the distance between Entry Price and the Take Profit
• For example, if Risk is 5 units and Reward is 10 units, the RRR is 1:2 , which means for every 1 unit you risk, you earn 2 units

Bullish market scenario

In the GBP/NZD currency pair chart, assume the trader enters Buy position at 2.17851 . The Stop Loss is set at 2.17527 , and the Take Profit is set at 2.18527 .

In this case, the indicator calculates the risk to reward ratio (RRR) as 1:2.09 and displays it in the top-left corner of the chart.

Bearish market scenario

In the GBP/USD currency pair 5-minute timeframe , the trader enters the Sell position at 1.22029 . Following risk management principles, Stop Loss is set at 1.22096 , and the Take Profit is placed at 1.21664 .

With these settings, the RRR is 1:2.45 , indicating that the potential profit is more than twice the risk.

Risk reward indicator settings

The image below shows the Settings Panel of the Risk Reward Indicator in MT4 :

• Entry line changes with price: Adjust the entry line according to price changes
• Display corner: Select the display position of RRR on the chart
• Font size: Control the font size of displayed text
• Label color: Set label color
• SL color: Select the stop loss color
• TP color: Select the color of take profit
• EP color: Select the color of the entry price
• Line width: adjust the thickness of the line
• Line style: Custom line style
• Line label font size: Set the font size of line labels

Conclusion

The risk-reward metric accurately assesses the risk-reward ratio (RRR) of each trade.

This risk control MetaTrader 4 indicator calculates the risk as the difference between entry point and the stop loss , and the reward as the difference between entry point and the take profit .