# Risk Reward Ratio Indicator For MT4

Risk Reward Ratio for MT4 is a simple tool that calculates and shows the expected Risk Reward for a Trade in Metatrader.

Risk Management involves two important aspects: Lot Size Calculation and Risk Reward Ratio. MT4 Lot Size Calculator is exactly what you need, an indicator that can take care of the Position Size and show the Risk Reward Ratio.

## Risk Reward Ratio

An important aspect of each trade, or strategy, is the Risk Reward Ratio.

Risk Reward Ratio indicates the ratio between the profit and the loss expected in a trade.

If you see a Risk-Reward Ratio of 1/2 it means you are risking 1 to gain 2.

For example you set the stop loss for a trade to 100 pips and the take profit to 200 pips, this is a risk-reward of 1/2.

There is no “correct” Risk Reward Ratio to use, it really depends on the strategy that you are using.

A strategy with a high % of win can be profitable with a low Risk Reward while a strategy with a low % of wins needs a higher risk reward.

To calculate the Risk Reward Ratio you need:

• Possible Loss
• Possible Profit

## Risk Reward Ratio Calculator Indicator For MT4

In normal circumstances you would need to calculate manually the risk reward ratio starting from the planned profit and loss.

However, there is some Risk Reward Ratio Calculator Tool that can do the job for you.

The Risk Reward Ratio Indicator For MT4 makes everything easier and faster.

### MT4 Position Size Calculator

If you want an easy and quick way to calculate the position size and see the risk reward ratio then MT4 Lot Size Calculator is what you are looking for.

The interface can be configured with your preferred risk parameters.

Once you configure your Stop Loss and Take Profit Levels the tool will automatically return the Risk Reward Ratio on chart.

The use is very simple and intuitive.

### Stop Loss And Take Profit Configuration

With this indicator you can easily set the stop loss and take profit directly from the panel and adjust with the chart.

### Position Size Calculator

If you set a Stop Loss the indicator immediately calculates the Lot Size to satisfy the risk management.

### Risk Reward Ratio Calculator

If you set both Stop Loss and Take Profit the tool can show you the Risk Reward Ratio.

### Risk Management Parameters

The indicator also allows you to change the base, percentage and amount you risk, for flexible calculation.

## Conclusion

MT4 Lot Size Calculator is a great indicator to quickly see the ideal position size and risk reward ratio.

This is a tool that can significantly reduce the time spent in this task and I really hope it will help you.