What is r multiple (reward-to-risk)?
Your result measured in units of what you risked rather than in dollars, and the reward-to-risk you planned going in.
Your result measured in units of what you risked rather than in dollars, and the reward-to-risk you planned going in.
R multiple (reward-to-risk), explained
One R is the money you put at risk on a trade: the distance from your entry to your stop, times your size. A close that made twice the risk is +2R; one that hit the stop is −1R. Because R cancels out size, a $200 risk and a $2,000 risk can be read side by side on the same page. Set before you enter, the same idea is reward-to-risk: the distance to your target divided by the distance to your stop, so a 2:1 plan stands to make twice what it risks if both prices hit. Higher is better — but only if your win rate holds.
A worked example
Buy AAPL at $186, stop at $184 (risk $2), target $192 (reward $6): the plan is 3.0R. After the fact, risking $200 and closing +$600 is +3R; risking $2,000 and closing +$1,000 is +0.5R, so the smaller position was the better decision.
Where r multiple (reward-to-risk) shows up in a journal
A trading journal is where this stops being a definition and becomes your own number. sizeforzero computes it from the trades you import or log, alongside the rest of your analytics vocabulary, and every figure in the app carries an (i) that explains it in the same plain English you just read.