R-multiples: the honest scoreboard
Wins and losses in units of risk.
Think in R
1R = the amount you risk per trade (distance to your stop, in money). A win of 2R means you made twice what you risked. Judge months, not trades: ten trades at +1R with four losers at -1R is a +6R month.
| Outcome | R | Example ($100 risk) |
|---|---|---|
| Full stop-out | -1R | -$100 |
| Scratch / time stop | 0R | $0 |
| Target one | +2R | +$200 |
| Runner | +3.4R | +$340 |
Win rate is not the point
A 40% win rate with 2R winners is comfortably profitable; an 80% win rate with -3R losers is a slow bleed. What matters is the average R across many trades — expectancy.
Quick check
You risk $50 and make $150. In R terms that is…
- +3R
- +1.5R
- +$150R
- 50%
150 ÷ 50 = 3. R-multiples keep every trade comparable no matter the size.
Which trader is most likely profitable over 100 trades?
- 35% wins averaging +2.5R, losses -1R
- 90% wins with -5R losses
- 50% wins at +0.3R, losses -1R
- One 100R winner out of 100 losers
0.35×2.5 − 0.65×1 = +0.225R per trade. Positive expectancy, sustained, is the only formula that matters.
This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.
Educational content only — not financial advice.