R-Multiple
Risk ManagementA trade's result expressed in units of its initial risk, so outcomes are comparable across instruments and position sizes and expectancy can be calculated.
An R-multiple expresses the result of a trade in units of the risk that was taken on it. If the initial stop was 40 pips away and the trade was closed 80 pips in profit, the result is +2R; closed at the stop, it is −1R. R stands for the initial risk, so every trade is measured on the same scale regardless of instrument, position size or account currency.
The value of the unit is that it makes results comparable and makes an expectancy calculation possible from a trading journal. It says nothing about whether a system is profitable — a run of +3R trades with a low hit rate can still lose — and it depends on the initial stop being real, because moving a stop after entry changes the denominator the result is divided by.