R-Multiple Calculator

R is your initial risk on a trade — the distance from entry to your stop. An R-multiple expresses the outcome of the trade in units of that risk: a trade that made twice what you risked is +2R, and one that hit its stop is −1R. Measuring results in R makes trades of different sizes directly comparable.

Divide the trade’s result per share by the initial risk per share. For a long, result = exit − entry and risk = entry − stop, so R = (exit − entry) ÷ (entry − stop). Entry $100, stop $96, exit $112 is a +3R trade.

Because dollars depend on position size, which varies trade to trade, while R normalizes for it. Tracking expectancy in R — your average R across many trades — tells you whether your strategy has a real edge independent of how big you were sizing.