R-multiple

R is your initial risk on a trade: the distance from entry to stop, multiplied by position size. Fix it at the moment you enter, and every outcome afterwards gets expressed as a multiple of it. As [Trade Risk](https://www.thetraderisk.com/every-trader-should-think-in-r-multiples/) frames it, the R-multiple is simply profit or loss divided by that initial risk. So a trade that made twice what it risked is +2R, whether that was pennies on a micro lot or a serious sum on a funded account. Same number. Same information. That is the point. Dollars change meaning every time your account size or lot size changes, so a $500 winner tells you nothing on its own. Was it a scraped +0.4R on an oversized position, or a clean +3R on a small one? One of those is a habit worth keeping. Dollars cannot tell them apart. R can. Once every trade is logged in R, they add up into something honest. Your average R per trade *is* your expectancy. P&L Ledger states the [standard form](https://www.pnlledger.com/expectancy-r-multiples-the-plain-english-guide/): expectancy in R equals win rate times average winning R, plus loss rate times average losing R, with losses carried as negatives. What R exposes that an equity curve politely hides: - **Cutting winners early.** Your average winner comes in below the RR your rules targeted. Green months, leaking edge. - **Not honouring your own risk.** Any loss worse than -1R means the stop moved, or you sized past your plan, or you let slippage go unmodelled. - **Sizing inconsistently.** One -3R print sitting in a book of -1R losses is not bad luck. It is a rule you broke once. - **Confusing variance with edge.** A handful of fat R-multiples is a sample. It is not a system. The discipline is unglamorous: state your R before you know the outcome, at the moment you click. If you cannot say what 1R is on this trade, you do not have a trade. You have a position and a hope.