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Risk Reward

The Risk Reward drawing allows you to specify Entry, Take Profit, and Stop Loss levels to forecast how a long or short trade might unfold. On the chart, you will be able to see profit and loss, estimated risk, and an indicative account balance if price reaches your take-profit or stop-loss levels. You can drag the value lines on the chart to see how the risk/reward ratio updates depending on the changing levels.

Long position example​

Click once on the chart to place a long Risk Reward drawing.

Short position example​

Click once on the chart to place a short Risk Reward drawing.

Properties​

The properties panel below refers to the long Risk Reward drawing; the short drawing has the same fields.

Point value and quantity​

Point value (properties.trade.pointValue) scales the Qty, Reward, and Risk values shown on the drawing labels. The same formula applies to long and short Risk Reward drawings; only the valid Take Profit / Stop Loss ordering and P&L sign differ.

quantity = riskMoney / (riskDistance × pointValue × lotSize)
  • riskMoney — effective risk in account currency (from riskAmount, or a percentage of accountSize)
  • riskDistance — price distance between Entry and Stop Loss
  • pointValue — monetary value per price unit (default 1)
  • lotSize — lot size multiplier

The displayed quantity is rounded according to qtyPrecision on properties.trade.

Trade-related properties on the drawing:

export type RiskRewardRiskInputMode = 'default' | 'percentage';
export interface RiskRewardTradeProperties {
    riskAmount?: number;
    accountSize?: number;
    pointValue?: number;
    qtyPrecision?: number;
    moneyPrecision?: number;
    ratioPrecision?: number;
    riskInputMode?: RiskRewardRiskInputMode;
    /** When true, keep risk-to-reward distance ratio. */
    fixedRatio?: boolean;
    lotSize?: number;
}

To set the default point value for new long and short drawings, use the React-only drawingsConfig API on ChartReactApp — see Point value configuration on the React Risk Reward page.

How fixed ratio works​

When Fixed ratio is enabled, Take Profit and Stop Loss stay linked. Changing one level recalculates the opposite level to preserve the current ratio. When Entry is moved, Stop Loss stays fixed and Take Profit is recalculated.

Trading integration​

Create Order on the Risk Reward entry line and the related trading configuration are part of DXcharts React, not the core drawing module.

See Risk Reward (DXcharts React) for prerequisites, configuration, and an interactive demo.