Trading metrics
What is R-multiple in trading?
An R-multiple is a trade result measured in units of the risk you planned to take. 1R is the amount you would lose if your stop was hit; a trade that makes three times that amount is +3R.
R-multiple formula
R-multiple = Profit or loss of the trade / Initial risk (1R)
Initial risk is decided before entry: 1R = |Entry price − Stop price| × Position size (plus expected costs if you include them). It must be written down at entry; a risk value chosen after the trade is closed makes the R-multiple meaningless.
Worked example
- Buy 200 shares at $50.00 with a stop at $48.50. Risk per share = $1.50, so 1R = 200 × $1.50 = $300.
- Exit at $54.20: profit = 200 × $4.20 = $840 → $840 / $300 = +2.8R.
- Stopped out at $48.50: loss = $300 → −1R. A gap through the stop to $47.90 is a $420 loss → −1.4R.
Why traders use R instead of dollars
R removes position size from the result. A +$840 trade on a $300 risk (+2.8R) and a +$840 trade on a $2,000 risk (+0.42R) look the same in dollars but are very different decisions. Summing R across trades shows whether the method works independently of how much you traded; averaging it gives expectancy in R.
R-multiple and position sizing
Fixed-fractional sizing sets 1R as a percentage of the account, for example 1% of $30,000 = $300. Position size = 1R / (entry − stop) = $300 / $1.50 = 200 shares. With 1R fixed, a run of ten −1R losses costs about 10% of the account, which is a planned, survivable drawdown.
Useful R summaries
Total R, average R per trade (expectancy), average winning R, average losing R (should stay close to −1R if stops are respected), and the share of trades with risk recorded (coverage). Losses much bigger than −1R usually point to moved stops or oversized positions.
How FillScope calculates it
FillScope uses R = FIFO realized P&L / initial risk for each imported Interactive Brokers trade where you saved an initial risk greater than zero. Initial risk is a user-entered review field, not inferred from the Flex import. Partial closes, scale-ins, option multipliers, currency conversion and fees already included in the broker field can affect interpretation, so inspect the source row before acting on a summary.
Frequently asked questions
What does 2R mean in trading?
2R means the trade made twice the amount that was risked. If 1R was $250 (the planned loss at the stop), a 2R trade made $500.
Is R-multiple the same as risk-reward ratio?
No. Risk-reward is planned before the trade (target distance divided by stop distance). R-multiple is the actual result after the trade closes, divided by the risk taken.
Can a loss be bigger than -1R?
Yes, when price gaps through the stop, slippage is large, the stop is moved, or the position is added to. Average losing R well below -1R is a warning sign about execution or discipline.
What is a good average R per trade?
Average R per trade is expectancy in R. A positive value after costs over 100 or more trades means the method has made money per unit of risk; +0.2R to +0.5R is common for working discretionary methods.