{"id":613,"date":"2016-11-03T13:52:59","date_gmt":"2016-11-03T12:52:59","guid":{"rendered":"http:\/\/script-trading.com\/en\/?page_id=613"},"modified":"2016-11-03T16:48:06","modified_gmt":"2016-11-03T15:48:06","slug":"risk-reward-ratio-tool","status":"publish","type":"page","link":"https:\/\/script-trading.com\/en\/agenatrader\/agenascript-basic-package-free-download\/risk-reward-ratio-tool\/","title":{"rendered":"Risk Reward Ratio Tool"},"content":{"rendered":"

The risk reward ratio plays an important role in trading and is sometimes also called the ratio between chance and risk. The risk reward\u00a0does not say anything about the probability of the success of the trade, but it defines the value of the trade<\/em> and so it\u00a0reflects the expected profit to the risk which was taken. Quite simply, the risk reward ratio\u00a0is the ratio between\u00a0profit and\u00a0risk. It should generally be at least 1.5 or 2.<\/strong><\/p>\n

In our free Basic Package you will find an indicator which you can use as a tool to calculate the risk reward ratio. In this case the risk reward ratio will be shown directly on the chart.<\/p>\n

Settings for the\u00a0Risk Reward\u00a0Ratio<\/h2>\n

In the category\u00a0parameters<\/em> you can choose different charting\u00a0settings. Decimal Numbers<\/em> rounds the result of the Risk Reward Ratio calculation to 3 digits. Use the Font\u00a0Size<\/em> field to select the size of the text drawing on the chart. In the TextPosition<\/em> field you can choose the position\u00a0on the chart.<\/p>\n

\"crv\"<\/p>\n

Display the Risk Reward Ratio<\/h2>\n

In the chart below we see the chart of\u00a0Apple (symbol: AAPL) with three orders: Entry, Stop and Target. The risk reward ratio\u00a0is shown\u00a0in the upper right corner of the chart and consists of two values. On the right side we see the risk reward ratio\u00a0calculated by the difference between\u00a0prices.<\/strong> If there are several stops or targets used, a mean price value is used for calculation. On the left side we see the risk reward ratio\u00a0calculated by the position size.<\/strong> The “plus” sign shows you that our entry position size was larger than the target position size, so in this case we have some shares left in our portfolio when the target price level was reached.<\/p>\n

\"chance_risiko_verhaeltnis_anzeige\"<\/p>\n

Download<\/h2>\n

The Risk Reward Ratio tool is part of our free basic package.<\/p>\n

Download free Basic Package<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The risk reward ratio plays an important role in trading and is sometimes also called the ratio between chance and risk. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":117,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/page_fullwidth.php","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"class_list":["post-613","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/pages\/613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/comments?post=613"}],"version-history":[{"count":9,"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/pages\/613\/revisions"}],"predecessor-version":[{"id":626,"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/pages\/613\/revisions\/626"}],"up":[{"embeddable":true,"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/pages\/117"}],"wp:attachment":[{"href":"https:\/\/script-trading.com\/en\/wp-json\/wp\/v2\/media?parent=613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}