Risk/Reward vs Win Rate Heatmap

9 godzin temu

This indicator overlays two decision-support tables on your main chart:

1. Reward:Risk vs Win Rate Heatmap

A matrix that shows whether a given combination of Win Rate (%) and Reward:Risk (R:R) is expected to be:

• Profitable (green)
  
• Break-even (amber)
  
• Not Profitable (red)
  

The color is based on the standard expectancy concept:

E = p * R - (1 -p)

where p is win probability and R is Reward:Risk.
The diagonal amber cells represent the break-even boundary.

2. Drawdown Table

A quick reference table showing how much % gain is required to recover after a capital drawdown (e.g., -20% requires +25% to return to break-even). This is meant to anchor capital preservation and risk management decisions.
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How to Use

Set your expected Win Rate and R:R in the inputs.

Enable Show highlight to display a status icon on the matching cell:

• Profitable: 💰
  
• Break-even: ⚠
  
• Not profitable: 🚫
  

(All icons are customizable.)

Use the heatmap to sanity-check whether your strategy parameters make sense, and use the drawdown table as a reminder of why protecting capital matters.
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Inputs & Customization

• Position: Place each table anywhere on the chart (default layout provided).
  
• Colors: Header colors and heatmap colors are customizable (defaults included).
  
• Fonts: Title, headers, labels, legend, and icon font sizes are configurable.
  
• Icons: Set your own symbols for Profitable / Break-even / Not profitable (with optional auto-contrast).
  

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Notes

• This script is educational and provides a visual framework to reason about expectancy and drawdowns.
  
• It does not generate trade signals and does not guarantee profitability.
  
• Results depend on the accuracy of your inputs and real-world execution (slippage, fees, market regime, etc.).
  

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Disclaimer

This indicator is for educational purposes only and is not financial advice. You are responsible for any trading decisions and risk management.

9 godzin temu

Informacje o Wersji

Update

Added a separate Drawdown Table (capital lost vs % needed to recover) as an on-chart risk reminder.

Default layout updated: Heatmap = middle_center, Drawdown Table = middle_right.