OPEN-SOURCE SCRIPT
Evolving R
The "Evolving R" script is a script that allows to calculate a dynamic reward-to-risk ratio at any given point of time during the trade. Its fundamentals are based on Tom Dante's concept of an evolving reward-to-risk. The script requires a user to input their preferred stop loss price and the target price for a specific asset, and calculates the ratio between two differences: (a) the absolute difference between the target price and the current price and (b) the absolute difference between the stop loss price and the current price.
The output of the script displays the ratio discussed as a value called "Evolving R" in the table. In order to use it successfully, the user of the script has to input:
(a) Stop loss price for the asset
(b) Target price for the asset
Theoretically, as long as the evolving R value holds above or equal to 0.25, the trade is worth holding. However, if the evolving R value drops below 0.25, the table turns red and signifies that such a trade possesses more risk than there is a reward remaining: this alerts the user to possibly take profits prematurely without risking their unrealized gains for a minor amount of additional gain.
The graphics of the script are represented by green and red areas: the green area indicates the area between the current price and the target price, while the red area shows the distance between the current price and the stop loss price. This visual representation allows users to understand the relative reward-to-risk ratio graphically in addition to the given evolving R value output.
The script is used for any type of trading: whether trend-trading or in a ranging market, it doesn't suggest a user which market conditions they should use.
The output of the script displays the ratio discussed as a value called "Evolving R" in the table. In order to use it successfully, the user of the script has to input:
(a) Stop loss price for the asset
(b) Target price for the asset
Theoretically, as long as the evolving R value holds above or equal to 0.25, the trade is worth holding. However, if the evolving R value drops below 0.25, the table turns red and signifies that such a trade possesses more risk than there is a reward remaining: this alerts the user to possibly take profits prematurely without risking their unrealized gains for a minor amount of additional gain.
The graphics of the script are represented by green and red areas: the green area indicates the area between the current price and the target price, while the red area shows the distance between the current price and the stop loss price. This visual representation allows users to understand the relative reward-to-risk ratio graphically in addition to the given evolving R value output.
The script is used for any type of trading: whether trend-trading or in a ranging market, it doesn't suggest a user which market conditions they should use.
开源脚本
本着真正的TradingView精神，此脚本的作者已将其开源，以便交易者可以理解和验证它。向作者致敬！您可以免费使用它，但在出版物中重复使用此代码受网站规则约束。 您可以收藏它以在图表上使用。
免责声明
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