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Risk tracking and reporting

Many traders think in terms of “R” – that is, the amount of risk you have on in a trade. If you are risking $100, and you end up making $200, that would be a 2R trade. You can think of R as a way to normalize your P&L results against the risk you have in a trade.

Today, we are adding both risk tracking and sophisticated risk reporting into Tradervue. First, you can now enter the amount of initial risk you put on in a trade (or “R”):

risk1

After you enter the risk for a trade, the return (in terms of R) will be calculated for the trade, as shown in the screenshot.

Just for an example, suppose you are buying 500 shares of stock, and your stop is $0.10 below your entry price. Your total risk is $50 – this is the value you should enter as “initial risk”. Now, suppose you end up selling the whole position up $0.50, for a gross profit of $250. Your gross return is 250 / 50 = 5R.

If you consistently use the same initial risk for all of your trades (or at least most of them), you can set your default risk value. To do that, go to Settings, click on the Trade Settings tab, and set your risk value:

risk2

Once you start entering your risk when you add trades, the fun starts. On each of the tabs in the Reports view, you’ll see a new selector for the type of report you want:

risk3

The “$” setting is the same setting the reports have always had – it reports P&L data in absolute dollar amounts. But if you click “R”, all of the reports will now report in terms of R:

risk5

Look at the horizontal axis – where you normally see some $ amount, now you see R multiples. This works for all of the reports – here’s another example:

risk4Again, the results are reported in R.

You can switch back and forth whenever you like; the reports are all very flexible.

On the Advanced reports tab, P&L, position MFE, and position MAE can now all be reported in R as well as $.

If you use a fixed risk value, and already have a large number of trades in Tradervue you’d like to apply it to, contact us and we can apply that for you.

The new risk features are available today for all users on the Gold subscription plan!

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