R Multiple

An R multiple states a trade's outcome as a multiple of the amount risked at entry: R multiple = profit or loss / initial risk. If the planned risk (1R) was $200 and the trade made $500, the result is +2.5R; a full stop-out is -1R.

Measuring in R instead of dollars makes results comparable across position sizes and account growth. A journal that reads +2R, -1R, +0.5R, -1R exposes the actual edge, while dollar P&L hides it behind whatever size the trader happened to use that week. Summing R across trades also feeds directly into expectancy.