An R-multiple expresses a trade’s result in units of the risk you took, where 1R is the amount you risked. A trade that makes twice your risk is +2R; a full stop-out is −1R. Professionals think in R because it strips emotion and position size out of the picture.
Why dollars mislead
A $500 win and a $500 loss feel equal, but if you risked $100 on one and $400 on the other, they are nothing alike. Dollars mix your edge with your size. R separates them, so you can see the quality of your decisions independent of how big you bet.
R makes trades comparable
Measured in R, a gold trade and a forex trade, a small account and a large one, are directly comparable. Your expectancy in R becomes a pure measure of edge — +0.3R means you earn thirty percent of your risk per trade, whatever the instrument.
R makes sizing a decision, not a feeling
Once you know your expectancy in R over a large sample, position size becomes simple maths: risk a fixed, small fraction per trade and let the edge compound. The emotion drains out of it.
See your results in R
NEXALIONE reports your expectancy and trade results in R as well as dollars, so you can judge your edge cleanly. Start free.