How R-multiple works
R-multiple expresses a trade’s outcome in units of the amount you risked, where 1R is your initial risk. If you risk $100 and make $300, that is a +3R trade; lose the full $100 and it is a -1R trade. By measuring results in R instead of dollars, you can compare trades of different sizes on one scale and see the true shape of your performance, independent of account size.
Worked example
Over 20 trades you log results in R: a few +3R and +2R winners, a string of -1R losers, one -0.5R where you cut early. Summed, the trades total +15R. If your standard risk is $100, that is $1,500; if it is $500, that is $7,500, but the skill expressed is identical at +15R. The R record shows your edge without the noise of changing position sizes.
Why traders track in R
Thinking in R keeps you focused on process, not on the dollar swings that trigger emotional decisions. A losing trade is simply -1R, a planned, bounded outcome, not a catastrophe. On Volity, logging every trade in R against your risk-reward ratio turns a messy P&L into a clean read on whether your system actually has an edge.
Why it matters
R-multiple is how disciplined traders measure themselves, because it isolates skill from stake and makes losses feel routine rather than threatening. Record your results in R and review the distribution, not the dollars. Related: position sizing and drawdown.
Learn more in our learn trading hub.
