Overview:
The Risk Reward Draw Tool software is a Drawing Tool Add On that helps map out your Trade Plan. Given a Stop size, you can plan up to 4 Targets at your own chosen Risk Reward Multiples. By displaying the distance to each marker in Ticks/Dollars/Percent, it is quite fast and easy to verify that your Trade Plan conforms to your risk parameters.
Purpose:
Traders need the Risk Reward Draw Tool because managing risk is the number one job of any trader. Your Trade Plan includes your personal Risk Model but how do you ensure that your Stops and Targets follow the rules? Having a tool that efficiently lays out all the risk/reward calculations in easy to read fashion is truly valuable.
Elements:
- Risk Reward Trade Plan (Entry, Stop, Targets)
- Up to 4 Targets
- Custom RR Target Multiples
- RR Measurement Labels (Ticks, Dollars, Percent)
Functions:
The Risk Reward Draw Tool is best used by first customizing the settings to match your personal Risk Reward parameters. Then when you are planning a trade, you can drag your stop to the correct dollar amount. At that point all your Targets are displayed with the associated profit at each location. Being able to do this quickly is important when trading in live markets.
Problem Solved:
- Stops traders from second guessing Trade Management
- Stops traders from violating their Trade Plan
- Stops traders from violating their risk rules
- Stops traders from exiting too early
- Stops traders from failing to let their winners run