Risk Reward Ratio is one of the basic elements of money management, but many people don't know how to use it properly. Not talking about risk reward ratio tool for mt4/mt5 but using just risk reward ratio in trading.

Many traders point target and stop levels with fixed RR, but SL/TP should be marked after chart analysis and in the next step compute risk reward ratio for this trade, to decide if it is worth taking the risk and open this transaction, or wait for a better opportunity.

So make steps in the right order:
1. Point out place where you plan to open trade.
2. Select level where you anticipate price will not come (stop loss)
3. Select level where you anticipate price should come (take profit)
4. Compute risk reward ratio
5. Decide if it is good opportunity to trade or no.
If you add to risk reward ratio good position size calculation based on risk % of account balance (to keep stable low risk per trade) than your depo will survive even a series of lossy transactions.

All necessary calculations will do for you Risk Reward Ratio Indicator MT4/MT5.

Risk Reward Ratio Indicator has 3 types of lot calculations:
* Risk Balance - with this type, you can define in indicator's param max allowed risk % per trade (param "AllowedRiskPercent") and program calculate lot size based on stop loss distance and % of account balance.
* Risk Equity - this method works the same way as "Risk Balance", with the difference that the percentage size of the loss is depends on equity.
* Cash Amount - with this option, you can define fixed value of stop loss in the account currency (param "Cash Amount"), and indicator will be automatically calculating lot size when you will be changing stop loss distance by moving lines on chart.

Indicator has also button "R:R" on panel. If this button is pressed, than indicator is keeping fixed risk to reward ratio. If user is moving stop level line, than indicator is automatically moving target level to keep fixed (defined in indicator's params) risk to reward ratio. The same if user is moving take profit line.

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