Risk/Reward Ratio Table Calculator

**Risk/Reward Ratio Table Calculator - Professional Position Sizing Tool**

This indicator provides a comprehensive risk management planning table for traders seeking to maintain consistent risk/reward ratios while respecting broker leverage limits and avoiding margin call scenarios.

**What This Script Does (NOT a Mashup):**

This is an original risk management calculation engine, not a combination of standard indicators. It uses a proprietary binary search algorithm to automatically calculate optimal position sizing that simultaneously:

1. **Binary Search Algorithm**: Iteratively finds the optimal position sizing multiplier through thousands of calculations that validate each configuration against your broker's margin requirements.

2. **Cumulative Loss Tracking**: Calculates realistic accumulated losses through sequential trades, allowing traders to understand the impact of consecutive losing trades on their account.

3. **Margin Call Protection**: Ensures individual trade exposures (Risk % × Leverage) never exceed your broker's safety threshold, preventing forced liquidation.

4. **Recovery-Based Position Sizing**: Unlike static position sizing, subsequent trades adjust their risk percentages to incorporate a configurable recovery factor, allowing traders to progressively recover losses while maintaining viable margin levels.

5. **Real-Time Dynamic Rebalancing**: The table recalculates as you adjust parameters, providing instant feedback on how leverage changes, different risk/reward ratios, or varying safety margins affect your trading plan.

**How It Works:**

- Step 1: Input your risk tolerance (initial %), broker leverage (1:X), and risk/reward ratio (e.g., 1:4)
- Step 2: Algorithm calculates maximum viable trades while respecting safety margin
- Step 3: For each sequential trade, computes: individual risk %, potential profit, cumulative loss, recovery target, and real exposure
- Step 4: Color-coded table displays results with warnings for high-exposure trades

**Key Original Calculations:**

The script employs a proprietary binary search algorithm testing thousands of position-sizing configurations. For each trade n:
- Cumulative Loss = Sum of all previous trade risks
- Risk% = (Cumulative Loss + Target Gain) / Risk-Reward Ratio
- Target Gain = (Base Gain × Multiplier × Recovery Factor) + Base Gain(1 - Recovery Factor)
- Exposure = Risk% × Leverage × 100

This specific combination—simultaneously optimizing for maximum trades, consistent ratios, sequential loss recovery, AND broker margin safety—cannot be replicated by combining standard indicators.

**Use Cases:**

1. **Scalpers** (1-5 min): Plan tight money management with 1:2 to 1:3 ratios
2. **Day Traders** (5 min - 4 hour): Plan daily sequences with 1:3 to 1:4 ratios
3. **Swing Traders** (4 hour - daily): Plan weekly sequences with 1:4 to 1:5 ratios
4. **Risk Managers**: Calculate maximum daily trades without margin call risk

**Parameters:**

- **Risk/Reward Ratio**: Your target ratio (1:4 means risking 1% to gain 4%)
- **Leverage (1:X)**: Your broker's leverage (CFDs: 1:30-1:500, Futures varies)
- **Initial Risk (%)**: Starting risk percentage (0.5% conservative, 1.0% moderate)
- **Number of Trades**: Sequential trades to plan per session
- **Safety Margin (%)**: Capital held in reserve (20-30% recommended)
- **Recovery Factor**: How much of losses to recover (1.0 = full recovery)

**Table Color Coding:**

- Green header: Main parameters
- Red column: Accumulated losses increasing through sequence
- Yellow column: Individual trade risks
- Orange column: Recovery targets in TP
- Green column: Potential gains
- White column: Net P&L for sequence
- Exposure column: Leverage exposure with warnings (Green < 50%, Yellow 50-75%, Orange 75-90%, Red 90-99%, Dark Red 99%+)

**Originality Statement:**

This script's core algorithm—the binary search position-sizing engine—is original work. While position sizing concepts are well-known, this specific implementation simultaneously optimizing for maximum viable trades, consistent risk/reward ratios, sequential loss recovery, and broker margin call avoidance represents a unique contribution distinct from any simple indicator combination.

---

릴리즈 노트

"This indicator is a personal interpretation and Pine Script
implementation of trading concepts from Swing Traders.
While based on these principles, the code, calculations, and
visualization are original work designed specifically for TradingView."

오픈 소스 스크립트

트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.

alegorico

면책사항

해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.

오픈 소스 스크립트

alegorico