WickCheck / Trading school / R and R-multiple

R and R-multipleRBeginner

R is the amount you risk on a trade. A result of +2R means you made twice what you risked; -1R means you lost what you risked.

target +2Rentrystop −1R
Simplified illustration, not real market data.

What it means

Measuring in R makes results comparable across markets and account sizes. A strategy with a 40% win rate and 2R winners makes money; the same win rate with 1R winners loses.

How to spot it

Common mistakes

Related terms

Risk to rewardHow far the target is compared with the stop. A 1:2 trade risks 1 to make 2.…ExpectancyThe average result per trade, usually in R. Positive expectancy means the strate…Stop lossThe price where a losing trade is closed to cap the loss at a planned amount.…
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