Risk Management Indicator

Risk Management Indicator

Risk management (RM), an MT4 indicator, tells you the trade risk. The indicator can be used to calculate your risk percentage for open positions. The Risk Management Indicator, which is unique among indicators, is one of the best. It displays account balance, floating point, percentage, leverage, total risk per trade, and other information.

The indicator will reduce your risk if you open either a long or short position.

The indicator will display the account’s floating points and percentage risk whenever you open a new position. The indicator will show you how to manage your risk levels, regardless of whether you win or lose.

How do you trade with the Risk Management Indicator

The Risk Management Indicator does not look like your standard mt4 indicator. It does not give you buy or sell points. It simply points out the risk level for each trade and reduces your exposure to high-risk trades.

For long and short positions, you will need to combine the indicator along with other technical indicators such as the RSI or Moving Average.

Below is the buy/sell strategy for the RM Indicator and the RSI.

Buy Strategy for Risk Management Indicator

  • The RSI should not exceed 30.
  • Keep waiting for the trend’s continuation.
  • After confirmation of an uptrend, enter the long trade.
  • Stop-loss should be below the swing low.
  • When the RSI reaches 70, point the take-profit.

Sell strategy for Risk Management Indicator

  • The RSI should not be above the 70 level.
  • Keep waiting for the trend’s continuation.
  • After confirmation of the downtrend, enter the short trade.
  • Stop-loss should be below the swing high.
  • When the RSI is below 30, point the take-profit.

Conclusion

The RM indicator doesn’t give you information about entry and exit points, but rather it gives you information about risk for each trade. It can be combined with other indicators to help limit risk exposure.

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