*Updates - Since I recorded this video there have been a few updates to the indicator.

Updates are listed below.

- The number of shares/contracts is now automatically determined AFTER a trade is opened

- For now I have removed the trailing stop function, which was previously included for the stock version of the indicator.

OVERVIEW OF THE RISK REWARD INDICATOR

SETTINGS

Currently there are only four settings for this indicator. I wanted to keep it as simple as possible because speed and efficiency are crucial for day trading success.

options:

By default this is set to "yes". If you are trading options then leave this alone. If you are trading stocks change this setting to "no".

contracts:

Before entering a trade you can input the number of shares/contracts you plan on buying. The "Potential Risk" label will then show your risk amount on the trade based upon that number of shares/contracts.

manual stop loss:

You must enter a stop loss level in order for the risk amount and take profit levels to be calculated. This enforces the concept that the proper stop loss level MUST be determined BEFORE entering a trade.

I find that struggling traders often are in the habit of moving stop losses to avoid losses or debating on how they are willing to lose after entering a trade. This approach always leads to struggles and large losses that will keep you from becoming profitable.

Pick your stop before you place a trade and live with it. The stop loss you determine before entering your trade must never be moved under any circumstances. The path to profitability begins with proper risk to reward management. This indicator will keep your trades honest.

risk percent:

Input the amount of your acount that you are willing to risk. If you are currently not consistenly profitable I recommend entering "0.01" for a 1% risk. I recommend that profitable traders always keep risk under 4%.