Risk Management Indicator

Risk Management Indicator

The indicator displays the risk percentage on each trade. And it’s really helpful for limiting risk exposure.

Risk management (RM) is an MT4 indicator that tells you about the risk value of each trade. You can apply the indicator to calculate the risk percentage on your open positions. The Risk Management Indicator is one of the most unique you can find. It points out account balance, floating-point, percentage, leverage, and total risk per trade.

If you open a long or a short position, the indicator will minimize your risk on every trading entry.

Whenever you open a position, the indicator will mention the account’s floating points with percentage risk. Therefore, whenever you lose/win, the indicator will help you manage your risk level.

How to trade with the Risk Management Indicator?
The Risk Management Indicator is not your typical mt4 indicator. It doesn’t provide you with buy or sell points. Instead, it just points to the risk level of each trade, thereby reducing your chances of high exposure.

You need to combine the indicator with other technical indicators like the RSI or Moving Average for long and short positions.

Below is the buy/sell strategy of the RM Indicator with the RSI.

Risk Management Indicator buy strategy
The RSI should be below the 30 level.
Wait for the trend to continue its path.
Enter the long trade after the confirmation of the uptrend.
Put stop-loss below the recent swing low.
Point the take-profit when the RSI reaches above 70.

Risk Management Indicator sell strategy
The RSI should be below the 70 level.
Wait for the trend to continue its path.
Enter the short trade after the confirmation of the downtrend.
Put stop-loss below the recent swing high.
Point the take-profit when the RSI reaches below 30.
Conclusion
The RM Indicator doesn’t tell you about the entry and exit points; rather, it tells you about the risk on each trade. So, when combined with other indicators, it’s really helpful for limiting risk exposure.