Setting Forex Stop Loss and Take Profit from a Risk–Reward Ratio

Summary

This document describes a trading script that sets stop-loss and take-profit levels for open positions using a chosen risk–reward ratio. The trader specifies a stop distance in pips, and the script calculates a corresponding take-profit distance. It can apply the levels to all positions or limit changes to positions in the current symbol.

The document outlines the inputs and a basic workflow: open positions, attach the script to a chart, adjust settings, and run it. It gives no completed calculation example, performance evidence, or implementation details, so the exact handling of direction, existing orders, and instrument-specific pip conventions is unclear. The stated scope includes forex pairs, metals, and indices, but the described distance is pip-based. The tool automates order-level risk settings; it does not explain position sizing, whether a trade is worthwhile, or how to manage execution risk. Its benefits are asserted rather than supported by testing or results.

Key ideas

• A chosen risk–reward ratio determines the take-profit distance relative to the stop-loss distance.
• The stop-loss input is specified in pips, and the script calculates the target automatically.
• A setting controls whether changes apply to every position or only the current symbol.
• The document provides no performance evidence or detailed treatment of instrument-specific pip conventions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.