RR Tool - Risk management / Position sizing study

[mikrom]

This free study displays SL/TP levels on the chart based on either:

• ATR (Average True Range) with your chosen settings.
• A fixed range value (e.g. 5 points risk and TP levels based on that)

It also displays the number of contracts to use for your trades. You can set the risk dollar amount in the settings, which is the amount you would lose if you placed the stop loss at the 1R level.
Adjusting size according to the ATR can help you keep your risk consistent regardless of market volatility. Currently, only futures contracts are supported for the size calculation.

I use 1m ATR (10 bars back) for scalping but you can set it to any timeframe and period.




Since the study doesn't know if you intend to short or long, it will display targets on both sides by default. However, this can be changed from quick settings on top of the chart.

Cross trade setting​

If you use cross trade in MotiveWave, you might want to enable the Cross Trade option in the study settings so that it calculates the number of micro contracts to use instead of mini contracts. The study already has built-in support for the following symbols if the tick value setting is set to Auto:
ES, NQ, YM, RTY, GC, CL, FDAX.

If you trade a different symbol than these with cross trade on, you will have to set the custom tick value of the micro contract equivalent. For example, ES (MES) has 1.25, NQ (MNQ) has 0.5. You can google specific contract specifications to figure out what value to use.

Download here​

https://tradingtools.dev/rr-tool

I will add some new options to this study soon, suggestions are welcome too!

 

[Traders-Table]

Nice little tool this. Thanks for posting.

 

[isar]

Hi Mikrom, this is nice, I've been looking for such dynamic lines based on ATR! One thing I've been trying to figure out in motivewave is if we can drag the "starting point" somewhere (so instead of the tools automatically anchoring to the current/last price we'd be able to move it around and place it, say above the prior bar or above a Support/Resistance level that formed a couple of bars earlier). Would be super useful if that would be possible!

Thanks again for sharing!

 

[mikrom]

Hi Mikrom, this is nice, I've been looking for such dynamic lines based on ATR! One thing I've been trying to figure out in motivewave is if we can drag the "starting point" somewhere (so instead of the tools automatically anchoring to the current/last price we'd be able to move it around and place it, say above the prior bar or above a Support/Resistance level that formed a couple of bars earlier). Would be super useful if that would be possible!

Thanks again for sharing!

I don't think that's possible with the current SDK, but I do have a new option planned where you can use for example previous candle close or previous candle midpoint instead of last price for the Y-axis. Not exactly the same as what you described, but it could be useful for traders who trade candle closes.
I will post here when it's published.