What is R-Multiple?

Trade results measured in units of initial risk: a +3R trade made three times what it risked, regardless of account size.

An R-multiple expresses a trade's result as a multiple of its initial risk. The distance from entry to stop loss is defined as 1R — one unit of risk. A trade that risks $100 and makes $300 is a +3R trade; one that hits its stop is −1R; one closed early for a $50 loss is −0.5R. The convention strips account size out of the conversation entirely, so a student with $500 and a funded trader with $50,000 can compare the same setup honestly.

Thinking in R changes behaviour. Instead of asking whether a trade made money, you ask whether it made enough relative to what it risked — and a year of trading collapses into a single, comparable ledger: total R gained across all trades. It also exposes bad habits instantly: a journal full of −1R losses and +0.4R winners reveals a trader cutting winners early, no matter how good the entries look. Reviewing results in R is a core part of how P4 Provider evaluates student journals during mentorship.