OPEN-SOURCE SCRIPT
Updated Risk/Reward vs Win Rate Heatmap
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:
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:
(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
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Notes
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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.
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.
________________________________________
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.
________________________________________
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.).
________________________________________
Disclaimer
This indicator is for educational purposes only and is not financial advice. You are responsible for any trading decisions and risk management.
Release Notes
UpdateAdded 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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Setup + Risk Management + 1% better daily = Consistency. 📈
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Setup + Risk Management + 1% better daily = Consistency. 📈
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.