Question 1

What is an R-multiple in trading?

Accepted Answer

An R-multiple measures your trade result relative to your initial risk (1R). If you risk $100 and make $200, that is a +2R trade. If you lose $50, that is a -0.5R trade. R-multiples help you evaluate trades independently of position size.

Question 2

Why should traders use R-multiples?

Accepted Answer

R-multiples allow traders to compare trades fairly regardless of position size, focus on risk management rather than just dollar amounts, track expectancy (average R per trade), and identify if they are cutting winners short or letting losers run.

Question 3

What is a good expectancy in R?

Accepted Answer

A positive expectancy means you have an edge. Aim for at least +0.3R expectancy per trade. This means on average, you expect to make 0.3 times your risk on every trade over the long run.

R-Multiple Calculator