Drawing a Risk/Reward Calculator:
1. Click on the Risk/Reward Calculator on the Financial Toolbar.
2. Click at the beginning of your technical formation, hold down the
mouse button and drag the calculator line to cover the area between your
initial order and your risking stop loss order. (See example chart on
page 210).
3. This will automatically create an equal-sized reward area which can
then be stretched to the proper distance you expect the graph to
retrace. Note: The numbers in the tool indicate the dollar amount of
risk and reward.
4. When the chart is trading within the risk area (negative number), you
are risking your own money. When the chart is trading within the reward
area (positive number), you are risking OPM or "Other People's Money".
5. Use the Risk/Reward Calculator on all trades to calculate where your
order entries and exits should be placed.
Resizing the Risk/Reward Calculator:
1. Select the calculator by clicking on it. Note: The calculator is
selected when boxes appear on the corners.
2. Click on one of the boxes to drag the select point and release the
mouse button.
Moving the Risk/Reward Calculator:
1. Select the calculator by clicking on it, continue holding down the
mouse button.
2. Drag to the new location and release the mouse button to place.
Deleting the Risk/Reward Calculator:
1. Select the calculator by clicking on it and press the Del(Delete) key
on your keyboard to remove.
2. Or, right-click on the calculation and select "Delete" from the menu.
Changing the Properties of a Risk/Reward Calculator:
Right -click on the drawing to view the Properties menu. Properties that
can be changed are:
Foreground
- Changes the line color of the Risk/Reward
Calculator.
Line Thickness - Changes the thickness of the Risk/Reward line.
Choose values from 1-6.
Line Style - Changes the line style of the Risk/Reward
Font - Changes the Font, Size, Style, and Color of the values.
Show Text - Deselect\Select to view or hide the values.
Settings - The settings window allows users to adjust the end
points and make their calculations more accurate as well as specify the
number of contracts purchased. Click on "OK" to make the change or
"Cancel" to exit this window.
Send to Back - Changes the layer of the drawing. This option is
used when more than one drawing is in the same area of the chart. Click
on "Send to Back" when you need to access a drawing under the
Risk/Reward Calculator.
Delete - To delete the Risk/Reward Calculator.
Help - This option will bring up more about how to use this
calculator.
