R-Multiple Analysis - The Most Important Trading Metric

R-Multiple (Risk Multiple) measures your trading performance in units of risk. It's the professional way to evaluate trades regardless of position size.

What is R-Multiple?

R = Your initial risk per trade. An R-Multiple of 2R means you made twice your risk. -1R means you lost exactly your planned risk.

Why R-Multiple Matters

• Normalizes performance across different position sizes
• Shows true risk-adjusted returns
• Enables statistical expectancy calculations
• Used by professional traders worldwide