RiskMetricsMembers
Understanding R-Multiples & Expectancy
beginner·6 min read·Tier 1
Stop thinking in euros and start thinking in R. One number tells you if your strategy actually makes money.
An R-multiple expresses a trade's result as a multiple of the risk you took. If you risked €100 (that's 1R) and made €250, the trade was +2.5R. If you lost the full €100, it was −1R. Measuring in R instead of euros lets you compare a tiny scalp to a large swing trade on equal footing.
The formula
Log in to continue this lesson
This lesson is part of the full Academy curriculum. Log in to read it in full, track your progress, and earn certificates.
New here? Logging in covers the whole Academy — the first lesson of every course is free to preview.