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.
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
- R = distance from entry to stop, times position size.
Common mistakes
- Moving the stop wider during the trade. That changes your R after the fact.
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.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.