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R multiples explained

R is the money you planned to risk. Measuring results in R makes every trade comparable.

What is 1R?

1R is the loss you accept if your stop is hit. If you risk $250, then 1R = $250. A trade that makes $500 is +2R; a stopped-out trade is −1R.

How to calculate it

R multiple = profit or loss ÷ planned risk. A $375 win on a $250 risk is +1.5R. A $300 loss on a $250 risk is −1.2R, a sign of slippage or a moved stop.

Why R beats dollars and win rate

Dollar results change when your size changes. R does not. And win rate alone says little: winning 40% of trades at +2.5R averages +0.4R per trade, while winning 70% at +0.3R with −1R losses averages −0.09R.

Expectancy

Expectancy = win rate × average win − loss rate × average loss, all in R. Try your numbers in the free expectancy calculator.

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