Risk Reward Calculation

Bug reports and errors in the program
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Trader Robbie
Posts: 1
Joined: Sat Apr 17, 2021 12:29 am

Risk Reward Calculation

#1 Postby Trader Robbie » Sat May 01, 2021 3:37 am

Hi,

The Risk/Reward calculation should show 2.0 not 0.50 Is it a bag or am I missing some settings I have to adjust?

Risk Reward Calculation.JPG
Risk Reward Calculation.JPG (39.33 KiB) Viewed 23986 times

FX Helper
Posts: 1381
Joined: Mon Apr 01, 2013 3:55 am

Re: Risk Reward Calculation

#2 Postby FX Helper » Mon May 03, 2021 2:57 am

Hello,

Thank you for the screenshot.

It is not a bug, Risk/Reward tool is supposed to work this way in our program.

It shows Risk to Reward ratio.

According to your screenshot, Reward is bigger than Risk, that's why Risk / Reward is lesser than 1.

jasonp
Posts: 1
Joined: Wed May 19, 2021 9:59 am

Re: Risk Reward Calculation

#3 Postby jasonp » Wed May 19, 2021 10:21 am

Hello,

I agree with Trader Robbie here. The Risk to Reward Ratio should be displayed as a function of the Risk Taken; where the Risk Taken is always equal to 1R (1xRiskTaken). Therefore, if the projected reward is greater than the Risk Taken, the tool should display a number greater than one. Using Trader Robbie's example, the projected reward is 2R (2xRiskTaken), and the tool should therefore display Risk /Reward: 2. The function is displayed properly in the below example taken directly from the ForexTester Website. However, the calculation seems to be inverted within the program.
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Screenshot 2021-05-19 100853.jpg
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FX Helper
Posts: 1381
Joined: Mon Apr 01, 2013 3:55 am

Re: Risk Reward Calculation

#4 Postby FX Helper » Fri May 21, 2021 1:56 am

Hello,

Thank you for the suggestion.

As far as I know, our developers have decided to show the ratio as Risk to Reward.
Which means that if Risk is higher than Reward, then the value should be bigger than 1.

According to the screenshot from a website, Risk is 122 pips, while Reward is only 78, that's why Risk/Reward tool shows 1.56 value.

We will add an ability to change the tool and show an inverted value in the next program builds.

siboneloz
Posts: 1
Joined: Mon May 31, 2021 12:05 pm

Re: Risk Reward Calculation

#5 Postby siboneloz » Mon May 31, 2021 12:18 pm

FX Helper wrote:Hello,

Thank you for the suggestion.

As far as I know, our developers have decided to show the ratio as Risk to Reward.
Which means that if Risk is higher than Reward, then the value should be bigger than 1.

According to the screenshot from a website, Risk is 122 pips, while Reward is only 78, that's why Risk/Reward tool shows 1.56 value.

We will add an ability to change the tool and show an inverted value in the next program builds.


thank you very much for this. im in agreement with Trader Robbie. his correct R:R is 2:1 and not 0.5 as shown in the screenshot. i was also getting confused when testing the pending entries made with the R:R tool. i thought it was only doing it incorrectly on sell orders but looks like the tool also shows the incorrect R:R when doing buy orders as well

pic.png
pic.png (9.32 KiB) Viewed 22491 times

Swervo
Posts: 2
Joined: Sun Sep 19, 2021 1:33 am
Location: Brisbane Australia

Re: Risk Reward Calculation

#6 Postby Swervo » Sun Sep 19, 2021 2:35 am

Technically speaking the way the Risk/Reward is shown in the tool is correct.

For Trader Robbie's example the Risk to Reward ratio is 1:2 (i.e. Robbie risking $22 to make $44). 1 divided by 2 is 0.50 i.e. "Risk/Reward" means "divide Risk amount by Reward amount".
Or you can think of it as the Risk is only half of the Reward.

I think the way Risk to Reward is generally presented is actually showing Reward to Risk. And when people start talking about 2R (2 x Risk) etc just causes more confusion.

The example from Forex Tester website adds more confusion as it's showing the red Risk portion as smaller than the green Reward portion but as FX Helper pointed out the Risk is actually
122 points and the Reward is only 78 points. 122 divided by 78 is 1.56.

So maybe the tool needs to be changed to show "Reward/Risk 2.0" (for Robbie's case) etc. Or everyone just gets their head around the correct way of showing Risk to Reward ratio...

FX Helper
Posts: 1381
Joined: Mon Apr 01, 2013 3:55 am

Re: Risk Reward Calculation

#7 Postby FX Helper » Mon Sep 20, 2021 2:14 am

Hello,

Yes, the intent is to have two options in the program so each user can select whichever option suits for him better.

maryung
Posts: 3
Joined: Thu Jan 04, 2018 8:26 pm

Re: Risk Reward Calculation

#8 Postby maryung » Fri Oct 01, 2021 8:08 pm

When will this be fixed?
Can ForexTester do this right away?

FX Helper
Posts: 1381
Joined: Mon Apr 01, 2013 3:55 am

Re: Risk Reward Calculation

#9 Postby FX Helper » Mon Oct 04, 2021 3:27 am

Hello,

This will be fixed in the next version of the Forex Tester program as far as I know, it will be available soon.

dchanner
Posts: 3
Joined: Sun Nov 28, 2021 5:50 pm

Re: Risk Reward Calculation

#10 Postby dchanner » Wed Dec 01, 2021 7:20 am

Hi, 2 months have rolled on. When are we likely to see this fix?

agenda.me
Posts: 10
Joined: Thu May 07, 2020 11:55 pm

Re: Risk Reward Calculation

#11 Postby agenda.me » Wed Apr 06, 2022 5:23 pm

please, 1 year since the report.

I also need it before buy the program.
Thank you

Tweetybug
Posts: 3
Joined: Fri Jun 30, 2017 12:10 pm

Re: Risk Reward Calculation

#12 Postby Tweetybug » Sun May 29, 2022 9:48 pm

FX Helper wrote:Hello,

Thank you for the suggestion.

As far as I know, our developers have decided to show the ratio as Risk to Reward.
Which means that if Risk is higher than Reward, then the value should be bigger than 1.

According to the screenshot from a website, Risk is 122 pips, while Reward is only 78, that's why Risk/Reward tool shows 1.56 value.

We will add an ability to change the tool and show an inverted value in the next program builds.


It's now been over one year since this issue was brought up. The way "the developers" decided to take it upon themselves and calculate risk/reward in a way that 99% of traders would never do is beyond me. This fix seems so easy to do yet you guys are dragging your feet and giving zero feedback on the development. I initially bought FT3 with VIP data and have upgraded to FT4 and FT5 but it is stuff like this that makes me regret every penny I've spent here because these "little" things have added up to my limit.

Tweetybug
Posts: 3
Joined: Fri Jun 30, 2017 12:10 pm

Re: Risk Reward Calculation

#13 Postby Tweetybug » Fri Jun 24, 2022 10:54 am

This is just an FYI for those who are using the RR tool and something I just stumbled upon. Some of you may already be using it this way. Use the RR tool for the opposite trade. If you are looking to buy then use the sell RR and vice versa. At least that way you will see the RR the way most of us are used to seeing it. In a buy, your loss will be your profit and your profit will be your stop loss. Backwards to look but gets the job done since FT hasn't even attempted to respond on this for over a year.

trademark
Posts: 2
Joined: Sun Sep 11, 2022 9:00 am

Re: Risk Reward Calculation

#14 Postby trademark » Sun Sep 11, 2022 10:18 am

Well, this is disappointing. I spent £500 on this product less than two weeks ago and what, at first, seemed like a little niggle, actually turned out to be a show-stopper. Best guess answers from support and a year of users applying workarounds is unacceptable, IMO. @FX Helper, can you provide us with a date when this update will be pusjed or has the development of this application been abandoned? TIA

kmsid21
Posts: 2
Joined: Sat Sep 17, 2022 10:55 am

Re: Risk Reward Calculation

#15 Postby kmsid21 » Sat Sep 17, 2022 11:40 am

@trademark, I don't think development has been abandoned as the latest release of the software according to the About dialog is (2022.06.20). However, it would be nice to see a resumption of release notes in the Announcement section. I too am curious as to whether this issue will be fixed in the near future.

FX Helper
Posts: 1381
Joined: Mon Apr 01, 2013 3:55 am

Re: Risk Reward Calculation

#16 Postby FX Helper » Tue Sep 20, 2022 11:11 am

Hello,

Risk/reward tool has been already fixed in FTO (Forex Tester online) and it will be fixed in the next version of Forex Tester 5 software.

I will update this post when I have an information about date of release of this version.

Ithellion
Posts: 1
Joined: Sun Nov 13, 2022 6:25 am

Re: Risk Reward Calculation

#17 Postby Ithellion » Sun Nov 13, 2022 6:28 am

I registered to the forum specifically because of this issue. How hard is it to change? Two months since the last message, any news?

trademark
Posts: 2
Joined: Sun Sep 11, 2022 9:00 am

Re: Risk Reward Calculation

#18 Postby trademark » Thu Dec 01, 2022 3:18 pm

Ithellion wrote:I registered to the forum specifically because of this issue. How hard is it to change? Two months since the last message, any news?


Ridiculous isn't it? I have found other bugs, too. Mine will stop triggering positions even though price has moved far enough past the entry to tag me in. I have to reboot the application to get it to work how it should. If you drag a window onto another screen, then when you ctrl and drag a drawing to duplicate it, it isn't visible in any other windows. I think it is really amateur software. I had thought about requesting help in the forum but I have seen how that goes. I use FX Replay more, now. I am kicking myself for going all in on FX5. The codebase must be hell to work with, I can't think of any other reason why the team would palm its users off with promises for over a year. And @kmsid's comment on the lack of release notes speaks volumes to me. As I said in my initial post, disappointing!


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