Glossary

R-multiple

A trade's result measured in units of the risk you took. Risk $100 and make $300, and that trade is +3R.

In plain English

R is the amount you would lose if the stop is hit. Measuring results in R lets you compare trades with different stop sizes fairly. The average R per trade is called expectancy.

Uncle Gary explains

Uncle Gary bets $10 on a horse and wins $30: +3R. He then bets everything plus $40 more on the next race and loses: -7R. Gary only ever talks about the first race.

Why it matters for your money

In our test, the champion-style dip strategy averaged +0.02R to +0.12R per trade. Random market leaders with the same rules made +0.00R to +0.09R. No real difference.

Where we tested it

Related terms

All glossary terms. Educational content, not financial advice.