MTF-RISK [Module+]

Description

MTF-RISK [Module+] is a futures risk management tool that calculates standardized position sizing across multiple CME micro contracts, anchored to higher-timeframe structure. By combining multi-timeframe reference levels with a contract-based dollar-per-point model, it allows traders to maintain consistent risk across different futures markets.

Example:

User has selected the 1H timeframe for the risk table. Once an hourly candle closes, the high and low of that completed hour are locked as reference boundaries.

• Lower timeframe candles (e.g., 1m, 5m, 15m) reference these established 1H boundaries to calculate:
  
• Distance in points from the current close to the HTF high or low.
  
• Corresponding dollar risk based on the user-defined Max Risk per Trade ($) setting.
  

The risk table updates in real-time, showing the current stop distance, calculated contract size, and resulting risk in dollars for both upward and downward directions.

Benefit: Traders always maintain a fixed dollar risk, regardless of intraday price movement, while using HTF structure as the anchor for accurate and consistent position sizing.

1. Higher Timeframe Anchor

• Always uses the last fully closed candle from the selected higher timeframe (default: 60m).
  
• Captures the prior HTF high and low as reference boundaries.
  
• Lower timeframe closers (e.g., 1m, 5m, 15m bars) reference these established HTF boundaries to measure stop distances and calculate risk.
  

Use: Ensures all position sizing is tied to completed HTF structure, providing a consistent framework for intraday trades.

2. Risk Model Engine

• Traders define maximum dollar risk per trade.
  
• The system calculates allowable micro contracts based on stop distance (current close → HTF high/low).
  
• Supported contracts and their point values:
  

• MNQ (Micro Nasdaq 100): $2.00 per point
  
• MES (Micro S&P 500): $5.00 per point
  
• MYM (Micro Dow Jones): $0.50 per point
  
• MGC (Micro Gold): $10.00 per point
  

Formula:

Contracts = Max Risk ÷ (Stop Distance × VVALUE per Point)

• Risk ↑: Based on distance to HTF high.
  
• Risk ↓: Based on distance to HTF low.
  

Use: Provides consistent dollar risk sizing across different futures contracts and multiple intraday timeframes.

3. Risk Table Overlay

Compact, real-time on-chart table with customizable styling.

Columns:

• OP: Operation time (adjusted by user’s timezone offset).
  
• Points ↑ / ↓: Stop distances in points relative to HTF boundaries.
  
• Risk ↑ / ↓ ($): Dollar exposure at those stops.
  
• Micros ↑ / ↓: Allowable contract count.
  
• Asset: Displays selected futures contract in the header.
  

Custom features:

• Independent text/background colors per column.
  
• Highlighted latest row for clarity.
  
• Adjustable outline, row colors, and text size.
  

Use: Gives traders immediate insight into position sizing without leaving the chart.

Intended Use:

This is a risk visualization module, not a trade signal generator. Traders can use it to:

• Standardize risk sizing across multiple CME micro futures.
  
• Quickly evaluate trade setups relative to HTF structure.
  
• Measure stop distances from lower timeframe closes while referencing HTF boundaries.
  
• Maintain consistency in risk management regardless of the instrument traded.
  

Limitations & Disclaimers:

• Calculations assume standard CME tick values for MNQ, MES, MYM, and MGC.
  
• Other markets may not align with these dollar-per-point values.
  
• This indicator does not predict direction, generate entries, or guarantee outcomes.
  
• For educational and informational purposes only.
  
• Trading involves risk; always use proper risk management.
  
• Closed-source (Protected): Logic is visible on charts, but source code is hidden.