What is the Risk Reward Ratio Indicator for MT4?

The Risk Reward Ratio (RRR) is a technical analysis indicator used to measure a currency pair’s relative value. It provides investors with an overview of how likely it is for the current market conditions to persist over time and whether or not they are getting a good return on their investment.

Risk Reward Ratio Indicator

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How to use the Risk Reward Ratio Indicator for MT4?

To use RRR, you first need to create two columns in your chart: P/L and Volatility. The P/L column shows the profits earned from trading this pair, while the Volatility column indicates the volatility of price movements over the past few bars. Then, you place your cursor over each bar and click “Add Indicator.” You can choose which RRR calculation method to use: Exponential Decay or Average Rate Of Change.

Risk Reward Ratio Indicator MT4 trading settings

Forex risk reward ratio indicator (RRR) is a technical analysis tool that allows traders to determine whether they are trading at a potential loss or potentially profitable.

There are three main settings you need to adjust for the RRR indicator to work effectively:

1. Stop-loss placement – You’ll want to set your stop-losses so that if the asset’s price hits your designated trigger point, your account will be automatically closed out without taking any losses. This way, you’re mitigating any potential failures before they happen and preserving as much capital as possible;

2. Trade size – The more significant the trade, the higher chance it has of going wrong; and

3. Trailing stops – If conditions change and it looks like you may have overshot your original target by margins too large for comfort, placing trailing stops will ensure that even if prices move against you again down the road, at least some portion of your investment remains safe.

All these factors play into one another dynamically when executed on forex markets making perfect adjustments difficult but crucial for long-term success.

Risk Reward Ratio Indicator Advantages

There are a few benefits to using an FX Risk Reward Ratio indicator. First, it can help traders identify opportunities in the market that offer high rewards with low risk. Second, it can help them make informed decisions about when to take risks and how much capital they should allocate to those risks. Finally, the indicator can also be used as a guide for setting stop losses and taking profits.

Risk Reward Ratio Indicator Disadvantages

Forex risk reward ratio indicator (FRR) is a famous technical analysis tool traders use to measure and identify opportunities in the foreign exchange market. However, there are some disadvantages associated with FRR that should be considered before using it as a predictive tool.

First and foremost, FRR can be volatile and rush in either direction. This makes it challenging to use as a long-term trading strategy since any buy or sell order placed based on FRR may not hold for very long.

Second, while FRR indicates how much profit potential exists within an investment opportunity, it does not account for other factors such as currency volatility or market conditions trends. As such, relying solely on FRR could lead to significant losses if the underlying asset moves against you unexpectedly.

Finally, because FRR is based on historical data only (i.e., past prices), it cannot predict future movements accurately – making it unsuitable for day trading or investing in assets that tend to fluctuate often unpredictably (such as cryptocurrency). Overall, while For offers valuable insights into opportunities found within the foreign exchange market, its limitations should always be considered before acting upon them.

RRR Indicator installation on MT4

To install a Risk Reward Ratio (RRR) indicator on the MetaTrader 4 (MT4) platform, you will need to follow these steps:

  1. Download the indicator file in .ex4 format from a reputable source.
  2. Open the MT4 platform and go to the “Navigator” window.
  3. In the Navigator window, click on the “Expert Advisors” tab and the “Browse…” button.
  4. Locate the indicator file on your computer and double-click to install it.
  5. The indicator should now be available in the “Navigator” window under the “Custom Indicators” tab.
  6. Drag and drop the needle onto a chart to use it.

It’s always a good idea to test the indicator on historical data before using it on live markets and to read the documentation provided by the developer to understand how the hand is calculating the RRR, how it’s configured, and how to interpret the signals provided by the hand.

It’s also important to note that using an indicator alone is not a guarantee of success in trading. The RRR indicator is a risk management tool; it’s recommended to use it as part of a broader trading strategy that considers other factors such as market analysis and other indicators.

Risk Reward Ratio Indicator mt4

Risk Reward Ratio Indicator mt4 free download


The Risk Reward Ratio (RRR) indicator is a valuable tool to help traders identify opportunities in the foreign exchange market that may present themselves as favorable risk-reward scenarios. However, its limitations should always be considered before trading based on the signals provided by this indicator.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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