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Showing content with the highest reputation on 08/30/2022 in Posts

  1. 1 point
    Hi fellow BBT members, A while ago I was able to get DAS team to include the hotkey script the rectangle tool, and I've been using it to manually map out my risk / reward on the chart for every trade: This got me thinking that they should add a more convenient tool to draw risk / reward areas quickly on the chart, like the image I found below: So the idea was that you first set the parameters in the config menu (where you change colors and line types), say risk / reward is set at 1:3, when you drag across the chart to draw a red rectangle (risk), in the meantime it automatically draws the green rectangle 3 times the height (reward), like what's shown in the image. This way you can quickly examine if the risk / reward is in your favor, without having to calculate the numbers each time. To differentiate the buy / sell sides, you would drag from lower left corner to upper right corner to get the red rectangle on top (when you're selling), and vice versa when you drag from upper left corner to lower right corner. So you're always drawing the red rectangle but depending on which corner you start and finish you get the green rectangle below or above. Hope my explanation is not too confusing. Any thoughts? I think this could be really useful and I have contacted DAS about this idea. Hopefully they'll add it someday. ----------------------------------------------------------------------------------------- Edit: KyleK29 told me he's repurposed the Fibonacci tool to draw risk / reward on the chart in a similar manner, I tried it out and it worked pretty well, thought I should add this method to the post: So first you assign a hotkey to the Fibonacci tool, then configure the lines to be 100%, 0.01% and -200%. Press the hotkey, then starting from where your entry would be (black line), drag to where your stop level would be (red line), and the target (blue line) will automatically extend to twice your stop amount. This way you can quickly check if your stop / target makes sense. You can also play with the numbers to add more levels (1:1, 1:3 risk / reward, etc). The only thing is that the lines extend indefinitely and get messy if you want to trade the same stock later.
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