ENTRY  N° 59  /  80
Glossary

R-multiple

Part of the theme Expectancy and edge.

Definition

An R-multiple expresses a trade's result as a multiple of the amount risked, where 1R is the initial risk.

A winner that makes three times the risk is +3R and a full stop-out is -1R. Thinking in R decouples results from dollar amounts and lets you compare trades and strategies on one scale.

Formula / example: If risk is $200, a $600 profit is +3R

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