Join & EARN

FOREX ALGOS { }

R-Multiple

An R-multiple is a way to measure each trade’s profit or loss relative to the initial risk taken. “R” stands for the risk unit (typically the distance from entry to stop-loss). For example, risking $100 (1R) and gaining $300 yields +3R; a $50 loss on that trade is –0.5R. Journals like TradeZella and Trademetria display all trades in R units to standardize performance across different position sizes. Using R-multiples helps robotic traders think in risk-based terms: a robot should aim for high average R per trade, not just raw profits. It also exposes stop-loss adherence: a –1R exactly means the stop was hit. Trademetria illustrates how a distribution of R-multiples (e.g. having some 5R winners to offset many 1R losers) can be more insightful than win rate alone. By tracking R-multiples, developers can gauge if their EA’s targets and stops are well-calibrated and if trade management (such as trailing stops) is improving risk efficiency.