RR Tool
The RR (Risk to Reward) Tool displays dynamic SL/TP levels on the chart. Think of it as the built-in Profit/Loss component, but it follows price, has the ability to automatically adjust itself to the current market volatility, and calculates the position size for you.
The levels are based on either:
- ATR (Average True Range) with your chosen settings.
- A fixed range value, for example 5 points for the 1R/SL line and the extended targets will then appear at 7.5 points (1.5R), 10 points (2R), 15 points (3R) etc.
Usage and examples of RR Tool
RR Tool calculates the number of contracts needed to stay within your maximum risk per trade, assuming you place your stop loss at the 1R level. This can help you keep your risk consistent regardless of market volatility.
You can compare the SL/TP levels in relation to current price action for better entries.
The tool is not only useful for entries and position sizing but can be used for gauging the current market volatility. A large range means high volatility, a tight range means slow market.
The many customization options allow you to fine-tune the study to fit your specific trading needs.
Download Now
Get instant access to the RR Tool and improve your risk management
RR Tool
Risk management study for MotiveWave
Installation Instructions
- In MotiveWave, go to Study > All Studies
- At the bottom of the dialog, select Import
- Select the downloaded .JAR file
- The indicator will now be available in your studies list
Contact
Have questions about the indicators or want to request a customized indicator? Use the form below.