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Trading glossary

R-multiple:
results in units of risk.

A trade’s result measured against what it risked. If your stop risked $100 and you made $250, the trade was +2.5R.

The formula

R = points made ÷ points to your stop (a short makes entry − exit). On a loser with no stop logged, the exit is taken as the stop

R-multiple (R)A trade’s result measured against what it risked. 1R is what you stood to lose at your stop.
Average RYour R-multiples averaged over the trades with a stop: your edge in units of risk.
Stop lossThe price where you get out if the trade goes against you. It sets your 1R.

1R is what you stood to lose at your stop. Measuring every trade in R makes a $50 trade and a $500 trade comparable, and shows your edge without the noise of position size.

Example

Long NQ at 21,000 with a stop at 20,990: 10 points of risk. You exit at 21,025, 25 points up. That’s 25 ÷ 10 = +2.5R, whatever the size.

Working it out…

Runs in your browser: nothing you type is sent anywhere. Arithmetic, not advice.

In Journalcade

Every trade in R.

Log the stop and each trade shows its R. Reports switch from dollars to R in one tap, and the trades that lost more than 1R are counted for you.

  • R on every trade with a stop
  • Reports in dollars or in R
  • Losses past your stop, counted
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Journalcade · Reports
Reports in Journalcade on sample trades
Questions

Quick answers.

What does 1R mean?+
The amount you risked: the distance from your entry to your stop, times your size. A full stop-out is −1R.
Why measure trades in R instead of dollars?+
Because size changes. In R, a trade is judged by how well it paid for its risk, so a big position can’t make a weak trade look good.
Can a loss be bigger than −1R?+
Yes, when price jumps past your stop or you move it. Losses past −1R are worth looking at: they are risk you didn’t plan.
What is a good average R?+
Anything above zero over many trades means your trades pay for their risk.
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