Performance
A result expressed as a multiple of the amount risked. Risking 1% and making 2% is +2R, whatever the account size.
Using R rather than currency makes trades comparable across account sizes and position sizes, and removes the emotional weight of money from a review.
Also called: R, risk multiple.
Taught in
Win Rate Is Not the PointMeasuring Your EdgeWhy the number everyone quotes says almost nothing on its own — and what to look at instead.
Also covered in that lesson
Related terms