Risk and psychology
R multiple
Definition
A trade’s result divided by its 1R. +2R means you made twice what you risked; −1R means you lost the planned amount.
Example
Say 1R on a trade is $150. Exiting with a $375 gain is +2.5R, a $75 loss is −0.5R, and a stop-out that slips to a $180 loss is −1.2R. Logging every trade this way quickly shows whether your losses stay near −1R or keep slipping beyond it.
Hypothetical numbers, for illustration only.
Also defined in
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