Manage Stops & Targets Using NinjaTrader 8’s New Risk Reward Drawing Tool

2 min readOct 5, 2021

All investing requires a degree of risk, in theory the larger the risk the higher the expected gain and vice versa. While it’s easy to focus on the potential and hopeful reward for every trade, some believe it’s even more imperative to focus on the inevitable risk.

NinjaTrader 8 is packed with hundreds of new features and improvements. The new Risk Reward tool is an intuitive and user friendly enhancement to help traders determine the placement of protective stops and profit targets to achieve a specific risk/reward ratio.

The following steps outline how to use the Risk-Reward tool:

  1. Once the Risk Reward tool is selected from the Chart Drawing Tools Menu, simply locate the entry price for an active, pending or hypothetical trade and left mouse click to drop the first anchor point.
  2. A second left mouse click at the point representing the maximum risk you are willing to take on the trade will drop the second anchor point.
  3. Once the risk has been defined, NinjaTrader automatically plots the third anchor point defining the reward. By Default, NinjaTrader sets the risk/reward ratio at 2:1. To access and modify the risk/reward ratio, right click on the risk/reward line to access the properties menu. Enter the desired risk/reward ratio in the “Ratio” field and select OK.

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