MT4 Risk Reward (Multiple Orders) Indicator - Free Download - [TFLab] | Forex Indicator Download - MetaTrader 4 Resources

The Risk-Reward Ratio Indicator is a MetaTrader 4 indicator which determines the ratio between Stop Loss (SL) and Take Profit (TP) levels in a trade. After opening a position in MetaTrader and setting Stop Loss and Take Profit, the price difference between these levels and the entry point (Entry) will be calculated and displayed as a ratio in the upper left corner of the chart.

Traders can use this ratio to manage money and determine their risk-to-reward ratio (profit potential). This trading tool can also be used for multiple transactions of different trading instruments.

Indicator Table

Overview

One of the key factors for successful and profitable trading is risk management , which every trader must adhere to. One approach to risk management is to use a proper risk-reward ratio , a tool that comes in handy for traders who have difficulty calculating the ratio between stop-loss and take-profit levels.

Risk to reward ratio of a buy trade

In the image below you can see the price chart of Bitcoin (BTC) on a 15 minute time frame. A buy trade opens at $54,578 and sets stop loss and take profit levels. In a buy trade, take profit is placed above the entry point and stop loss is placed below the entry point.

The Risk Reward Ratio indicator calculates the price difference between stop loss and take profit relative to the entry point, resulting in a risk reward ratio of 1:2 , meaning a trader could risk $80 to earn $160.

Risk to reward ratio for sell trades

In the image below you can see the price chart of Binance Coin (BNB) on a 30 minute time frame. A sell trade has opened at $502 , with stop loss and take profit levels set. In a sell trade, Take Profit is placed below the entry point, while Stop Loss is placed above the entry point.

The Risk Reward Ratio indicator calculates the price difference between SL and TP relative to the entry point, showing a risk to reward ratio of 1:3 , meaning a trader could risk $50 to earn $150.

Indicator Settings

Display Setting

• Theme: Customize the chart theme to light or dark
• Order Setting
• symbol mode: Just select a symbol to use for a single trading symbol
• use magic number: Set false to disable magic number use
• Magic value: Enter the value of the magic number
• use comment: Create a comment for the magic number
• the comment value: Set the value of the comment

Box Setting

• Box Corner: Displays the lower left corner of the box
• X coordinate: Set horizontal distance to 10
• Y coordinate: Set vertical distance to 35
• X width: Set the box width to 80
• Y height: Set the box height to 80
• Font of Text: Set the font of the text in the box
• Font size of the Text: Set the text size
• Text Color: Set text color to black
• Background color: Set the background color to white
• BorderColor: Set the border color to blue
• Want to have a Box in the background: Set to false to avoid showing the box in the foreground

Conclusion

Using risk and capital management tools is crucial for all financial market traders. Before starting a trade, traders should evaluate the risk of each trade and enter with appropriate trading volume.

Professional traders can utilize a risk to reward ratio of 2 or higher depending on their trading strategy . The indicator automatically calculates and displays the profit and loss ratio on the price chart.