Account-size neutral
A +2R trade is the same trade on a 1,000 USD account and a 100,000 USD account. The number does not change.
One unit of risk equals 1R. A +2R win means you made twice what you risked. R-multiples make every trade comparable across account sizes, instruments and strategies.
The point of R is to make every trade you have ever taken comparable on the same axis.
An R-multiple is the realised result of a trade expressed in units of the initial risk. If you risked 100 USD and the trade made 250 USD, the result is +2.5R. If the trade lost the full stop, it is -1R. If you cut the loss at half the stop, it is -0.5R.
Formula: R-multiple = realised P&L / initial risk. Initial risk is the distance from entry to stop, multiplied by position size and pip value (or contract size). It is fixed the moment the trade is placed. Everything that happens after is measured against that anchor.
R-multiple is the realised cousin of the risk/reward ratio, which is the planned ratio of target to stop before the trade. The planned 1:3 trade can close as +3R, +1.2R, -1R or -0.4R depending on how it managed. R is what actually happened.
The mechanics of R, on a fixed 100 USD risk per trade.
| Trade | P&L | R-multiple | Notes |
|---|---|---|---|
| Plan: 1:3 | +300 USD | +3R | Hit the full target as planned. |
| Plan: 1:3 | +120 USD | +1.2R | Trailed out early. |
| Plan: 1:3 | -100 USD | -1R | Full stop hit. |
| Plan: 1:3 | -40 USD | -0.4R | Cut early on a thesis change. |
| Plan: 1:3 | -180 USD | -1.8R | Stop slipped on a gap or wider news. |
It strips out account size, currency and instrument so you can compare apples to apples.
A +2R trade is the same trade on a 1,000 USD account and a 100,000 USD account. The number does not change.
A forex swing trade and a crypto perpetual scalp are comparable in R. Dollars do not give you that.
"Down 8R in three weeks" is more useful than "down 4.7% on the account". R says how many trade losses you absorbed.
Average R-multiple per trade is the cleanest way to express expectancy: positive means edge, negative means leak.
A -1.8R when the plan was -1R says the stop slipped or you held past it. The number flags the issue.
Plotting every trade's R as a histogram tells you more than a single average ever can.
R-multiple sits next to the small set of metrics every serious trader keeps live.
The planned version of R, before the trade closes.
Open →Average R per trade, in dollars. The summary of the histogram.
Read →The companion ratio - gross R won over gross R lost.
Read →Drawdown measured in R is more honest than drawdown in dollars.
Read →The tool that fixes your 1R in dollars before the trade.
Open →Average R, R distribution and equity curve in R, calculated live.
Read →Everything worth knowing about R-multiple.
An R-multiple is the result of a trade expressed in units of the risk you took. If you risked 100 USD and made 250 USD, the trade is +2.5R. If you lost 100 USD, the trade is -1R. R-multiples make outcomes comparable across account sizes and strategies.
R-multiple = trade P&L divided by initial risk (the distance from entry to stop, multiplied by position size). Tracker Fx records the initial risk and the realised P&L on every trade and calculates R-multiple automatically.
Average R-multiple combined with win rate decides whether a strategy makes money. A +0.3R average over many trades is excellent. A +1R average win with 40% win rate is profitable. A -0.2R average is a losing strategy regardless of how it feels.
No. Risk/reward ratio is the planned ratio of target to stop before the trade. R-multiple is the realised outcome after the trade closed. A 1:3 risk/reward plan can end as a +3R win, a -1R loss, or anything in between.
Yes. Tracker Fx includes a 7-day free trial with full access to all journaling and analytics features. Card required, cancel anytime.
Connect cTrader, MetaTrader, OANDA or Bybit and Tracker Fx logs R-multiple, average R and R distribution on every trade - so the histogram is always up to date.
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