Risk Rewa Ratio Indicator MT4
- Indicators
- Eda Kaya
- Version: 1.3
Risk Reward Indicator for MetaTrader 4
The Risk Reward Indicator for MetaTrader 4 is developed to assist traders in determining the potential risk and return of a trading position. It calculates the Risk-to-Reward Ratio (RRR) using three key levels: Entry Price (EP), Stop Loss (SL), and Take Profit (TP).
This tool graphically presents the RRR at the top-left corner of the chart and highlights the trade levels with three distinct horizontal lines:
• Green Line – Indicates the Take Profit level
• Red Line – Marks the Stop Loss level
• Blue Line – Shows the Entry Price
«Indicator Installation & User Guide»
MT4 Indicator Installation | Risk Reward Indicator MT5 | ALL Products By TradingFinderLab | Best MT4 Indicator: Refined Order Block Indicator for MT4 | Best MT4 Utility: Trade Assistant Expert TF MT4 | TP & SL Tool: Risk Reward Ratio Calculator RRR MT4 | Money Management: Easy Trade Manager MT4
Risk Reward Indicator Specifications
Here’s a breakdown of the main characteristics of the Risk Reward Indicator:
| Category | Trading Tool – Capital Protection – Risk Analysis |
| Platform | MetaTrader 4 |
| Skill Level | Suitable for Beginners |
| Indicator Type | Risk Planning – Capital Strategy |
| Timeframe | Compatible with Multiple Timeframes |
| Trading Style | Optimized for Intraday Trades |
| Market | Forex – Crypto – Equities |
Indicator Overview
The RRR Indicator provides a visual and analytical way for traders to evaluate whether a trade setup is favorable by comparing the potential reward to the risk taken.
• For long positions, the risk is the distance from Entry to Stop Loss, and the reward is from Entry to Take Profit.
• Example: If your risk is 4 points and your target is 12 points, your RRR would be 1:3 – signifying a 3x potential reward for every unit of risk.
Bullish Market Scenario
On a GBP/NZD hourly chart, consider initiating a long position at 2.17851. The Stop Loss is placed at 2.17527 and the Take Profit at 2.18527.
• The indicator computes the Risk-to-Reward Ratio as 1:2.09, which is displayed in the chart’s corner for quick reference.
Bearish Market Scenario
In the case of a GBP/USD trade on the M5 chart, a Sell entry occurs at 1.22029, with a Stop Loss at 1.22096 and Take Profit at 1.21664.
• This scenario yields an RRR of 1:2.45, implying that the profit target is more than double the calculated risk.
Risk Reward Indicator Settings
Below are the customizable settings available within the indicator’s interface in MT4:
• Entry Line move with price – Keeps Entry Line dynamic with live price
• Display corner – Choose where the RRR label appears on screen
• Font size – Control size of on-chart text for visibility
• Label color – Select preferred color for text labels
• SL color – Define color for Stop Loss line
• TP color – Choose color for Take Profit line
• EP color – Assign color to Entry Price line
• Line width – Adjust line thickness
• Line style – Customize the appearance of plotted lines
• Line label font size – Control label font sizes on lines
Conclusion
The Risk Reward Indicator for MetaTrader 4 is an essential tool that delivers precise calculations for trade setup evaluations. It empowers traders to weigh potential profits against associated risks, ensuring disciplined trade management and strategy consistency.
