Risk/Reward tool helps you to calculate the position size based on the maximum risk you are willing to take opening the position, as well as estimate the Profit & Loss (PnL) and calculate the value of your account balance once the profit-target or stop-loss will be reached.
1) Start inserting the tool:
2) Draw Position Entry, Profit-Target and Stop-Loss levels on chart
3) Calculate position size based on the maximum risk you are willing to take
If you already know the position size then set the following properties in drawing tool configuration:
Calculation Method: Fixed
Value: enter the Position Size (quantity)
If you want to automatically calculate the position size based on the maximum risk you are willing to take, set the following properties in drawing tool configuration:
Account Size: set the account balance (total cash amount of your account)
Calculation Method: Automatic
Risk: The sum you are willing to lose in the position can be calculated in two ways:
Let’s see in detail all information available and how it is calculated:
1 = Entry, Target, Stop Price Levels
2 = Profit or Loss once the profit-target or stop-loss levels are reached
3 = Account balance once the profit-target or stop-loss levels are reached
4 = Current Position Profit & Loss (PnL)
5 = Position Size (quantity)
6 = Risk/Reward Ratio = ProfitOnTarget / LossOnStop