RISK MANAGEMENT TABLE

28 dic 2024

This updated Risk Management Indicator is a powerful and customizable tool designed to help traders effectively manage risk on every trade. By dynamically calculating position size, stop-loss, and take-profit levels, it enables traders to stay disciplined and follow predefined risk parameters directly on their charts.

Features:

Dynamic Stop-Loss and Take-Profit Levels:
Stop-loss is based on the Average True Range (ATR), offering a flexible way to account for
market volatility.
Take-profit levels can be customized as a percentage of the entry price, providing a clear
target for trade exits.
Position Sizing Calculation:

The indicator computes the maximum position size by considering:
Trade amount (montant_ligne).
Risk percentage per trade.
Transaction fees.

Visual Representation:
Displays stop-loss and take-profit levels on the chart as customizable lines.
Optional visibility of these lines through checkboxes in the settings panel.

Comprehensive Risk Table:
A table on the chart summarizes essential risk metrics:
Stop-loss value.
Distance from entry in percentage.
Position size (maximum suggested).
Take-profit price.

Customizable:
Adjust parameters like ATR length, smoothing type, risk percentage, transaction fees,
and take-profit percentage.
Modify the visual length of lines representing stop-loss and take-profit levels.

How It Works:
Stop-Loss Calculation:
The stop-loss level is calculated using ATR and a volatility factor (default: 2).
This ensures your stop-loss adapts to market conditions.
Take-Profit Calculation:
Take-profit is derived as a percentage increase from the entry price.

Position Size:

The optimal position size is computed as:

Position Size = Risk per Trade /ATR-based Stop Distance

The risk per trade deducts transaction fees to provide a more accurate calculation.
Visual Lines:

Risk Table:

The table displays updated stop-loss, position size, and take-profit metrics at a glance.
Settings Panel:
Length: ATR length for calculating market volatility.
Smoothing: Choose RMA, SMA, EMA, or WMA for ATR smoothing.
Trade Amount: The capital allocated to a single trade.
Risk by Trade (%): Define how much of your trade capital is at risk per trade.
Transaction Fees: Input fees to ensure realistic calculations.
Take Profit (%): Specify your desired take-profit percentage.
Show Entry Stop Loss: Toggle visibility of the stop-loss line.
Show Entry Take Profit: Toggle visibility of the take-profit line.