ND Research – Risk Reward Ratio
Investing success is favored to those who accurately manage risk.
Risk Little to Gain Much More*
It’s the universal winning formula that the successful master, yet elude others.
At what price will bears win? At what price will bulls dominate? These two points are where reward and risk are located.
Technicians call this Support and Resistance. Analysts call it demand and supply. Regardless it's the same:
Reward and the Risk for this position?
For most traders and portfolio managers this is the most difficult analytic to determine. Macro analyses by portfolio or sector typically require teams of analysts for this task.
The ND Research Reward Risk Ratio is built on our proprietary VBSR (Volatility Based Support & Resistance). It finds the correct VBSR zones that represent meaningful resistance and support. It’s quantitatively proven, and market hardened over the past five years. The accuracy of VBSR is now at your desktop in the form of the ND Reward Risk Ratio (ND RRR), only with Market Analyst.
The Reward to Risk analysis is made simple by separately measuring the distance from price to support, and from price to resistance. It’s displayed in a simple histogram.
What about a whole Portfolio?
When a portfolio is imported into Market Analyst, you can view the risk and reward as columns. Easily sorting them to reveal what you are holding that has high risk. Conversely you can scan the whole market for opportunities based on the same rules. Even perform sector analysis based on Reward to Risk Ratio analysis.
About Northington Dahlberg Research
Northington Dahlberg Research, LLC is a financial markets research firm. Their clients and subscribers include registered portfolio managers, traders, investment advisors, money managers, and financial services institutions. ND Research's expertise lies with quantitative research in Volatility-Based Technical Analysis, predictive relative strength, and portfolio management. ND Research is committed to being innovative, quantitative and transparent.
Carson Dahlberg, CMT
Kirk Northington, CMT
To access a 14 day trial of Market Analyst 7, with the ND Research Risk Reward Ratio tool, click the blue "Try Now" button in the bottom right corner of this page. Once you have submitted a trial request form a staff member from one of our global support centres will contact you shortly to set up your trial.
If you already own a copy Market Analyst 7, you can add a 7 day trial via the Add-Ons section of your Market Analyst online portal.
* Trading in derivatives, equities or any security carries substantial risk of financial ruin. While the methods provided by ND Research attempt to limit risk, risk cannot be fully mitigated by any strategy. It is critical that you understand your own tolerance for risk and operate within those boundaries. Unless you satisfy the criteria as a "Sophisticated Investor" or are a Professional in the financial industry, you must consult your financial adviser to determine if these tools are suitable for you.
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In providing you with access to any of the add-on tools from ND Research, neither Market Analyst International or ND Research are providing you with any advice of any nature, including, without limitation, investment advice. In respect of any Services or Content containing investment information, we are not communicating invitations or inducements to enter into investment agreements.